Even 6-figure earners rent in Seattle
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The share of high-income renters is climbing in Seattle — and across much of the country — as sky-high home prices and rising mortgage rates prompt even affluent households to lease instead of buy.
Why it matters: Homebuying costs have climbed faster than rents, making renting an attractive choice for many, even those with deep pockets.
Driving the news: Nearly 10% of Seattle metro renters in 2023 were in the top 20% of local income earners — up 0.5 percentage points from 2019, according to a Redfin analysis of Census Bureau data.
By the numbers: Seattle ranks among the top five U.S. metros with the highest share of wealthy renters, along with San Jose, San Francisco, New York, and Orlando, per the analysis.
- To be in the top 20% in the Seattle metropolitan area, renters needed a household income of at least $218,917 in 2023, per the report.
Between the lines: Redfin data shows that in cities like Seattle, high-income renters often spend significantly less of their income on rent than they would on a mortgage — especially at today's interest rates.
- Nationwide, the income needed to afford the median-priced home jumped 36.9% from 2019 to 2023.
- In the same period, median rents rose 28.1%.
The big picture: Rich renters were on the rise in 35 of the 50 most populous U.S. metros between 2019 and 2023, even though overall rentership declined during that time, the real estate site reports.
Zoom in: Seattle has been building toward this shift for decades, according to Redfin.
- From 2000 to 2019, the share of wealthy renters here grew more than in any other U.S. metro, rising from 6.7% to 9.5%.
- That period also saw the rise of Seattle as a major tech hub — and the steep increase in housing costs that came with it, the report's authors note.
The bottom line: For some top earners, renting is a strategy that allows them to "save up for the high-end home of their dreams," said Redfin senior economist Elijah de la Campa in the report.
- Another group may be drawn to the perks of high-end amenities and a maintenance-free lifestyle.
- For still others, it's about freedom and flexibility, said Juan Castro, a Redfin Premier real estate agent.
What they're saying: "The U.S. economy and job market are in flux," Castro said in the report. "People want to be able to move and flow as things change."