Starter homes in Seattle suburbs hit $1M mark
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First-time homebuyers in the Seattle area are facing staggering prices, even for so-called starter homes, which now top $1 million in eight local cities, per new Zillow data.
Why it matters: Would-be buyers in some of the region's most exclusive suburbs are confronting entry-level prices five to 10 times higher than the typical national starter home cost of about $193,000, a stark reminder of the region's persistent affordability crisis.
The big picture: There are now 233 cities with million-dollar starter homes, up from just 85 in 2020, per Zillow — with nearly half located in California, followed by New York, New Jersey, Florida, Massachusetts and then Washington.
By the numbers: Zillow defines "starter homes" as those in the bottom third of home values in a given area. In Washington, the following cities now meet or exceed the $1 million mark for such homes, Zillow spokesperson Mark Stayton told Axios in an email.
- Hunts Point — $3.5m
- Clyde Hill — $3.4m
- Yarrow Point — $3.3m
- Medina — $3.2m
- Beaux Arts Village — $2.4m
- Woodway — $1.7m
- Mercer Island — $1.6m
- Sammamish — $1.2m
What they're saying: "First-time buyers are facing a market where prices that once seemed unimaginable have become reality," Kara Ng, senior economist at Zillow, said in a statement.
Reality check: Sky-high starter home prices are just the beginning of problems for would-be buyers across the Seattle metro who are rethinking what, where and even whether they can afford to own here.
- It takes a single person in Seattle more than 27 years to save for a starter home, compared with just 3.6 years for a couple.
- Local home shoppers needed a $178,000 annual income to afford the metro area's typical starter home last year, per Redfin.
- Many Gen Z buyers are skipping Seattle entirely, turning to cheaper cities or co-buying with friends to get on the property ladder.