Zillow: one-third of homes 'unaffordable' in Seattle

Zillow: one-third of homes 'unaffordable' in Seattle

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Zillow: one-third of homes 'unaffordable' in Seattle

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by JAKE WHITTENBERG / KING 5 News

Bio | Email | Follow: @jakewhittenberg

KING5.com

Posted on April 4, 2014 at 6:55 AM

Updated Friday, Apr 4 at 6:55 AM

A new study by Zillow finds 37 percent of homes in the Seattle metro area are out of reach for the average buyer.

This comes even though the Puget Sound region is still considered among the hottest real estate markets in the U.S.

Zillow determined affordability by analyzing the current percentage of the median income needed to afford a mortgage payment on a median-priced home. The company them compared that to the share of income needed to afford a median-priced home in the “pre-bubble” years between 1985 and 2000.

That same study determined that more than half the homes on the market in seven major American metros are currently unaffordable for local residents. That included Portland where Zillow suggests 50 percent of houses are out of reach for the average home buyer.
 

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