New reports show homes increasingly unaffordable for most households in Washington

May 13, 2024

OLYMPIA… New reports are finding homes increasingly unaffordable for most. The median price of new homes in Washington has increased from $635,131 in 2023 to $747,199 in 2024, according to the latest report by the National Association of Home Builders. That’s $250,000 higher than the $495,750 median-priced new home across the US.

At that price, households in Washington need $221,293 in annual income just to qualify for a mortgage. Nearly 84 percent of households cannot afford a median-priced new home. That’s 2.7 million households out of the total of 3.2 million households in Washington.

All homes increasingly unaffordable for most

Looking more broadly at the median price for ALL homes in Washington, the Building Industry Association of Washington’s most recent Housing Affordability Index revealed the median sales price for all homes statewide was $640,000. Homes at that price require an annual income of $151,500. Only 26.7% of Washington households can buy a home at that price. More than 73 percent of households statewide are now priced out.

With the statewide median income of $90,325, the typical household can expect to afford a home of $425,700. That leaves a gap of $214,300 between how much Washington households can afford versus the median home price.

When looking at available inventory in the state of homes priced at or below $450,000 – selected as a realistic ‘starter home’ – only 3,592 homes were available as of May 8, 2024. The scarcity of inventory works alongside regulatory and lending hurdles to increase the final sales price of a home.

Read the Washington’s Housing Affordability Index report

Washingtonians want balance

During the 2024 legislative session, BIAW worked to stave off bills that would have resulted in higher home prices for those wanting to buy their first homes as well as added costs for existing homeowners.

Policies banning natural gas as an energy choice for Washington are prime examples. Washington’s new energy codes and a new law setting a course to end natural gas service for all homeowners add tens of thousands of dollars to housing. The cost to convert a home with natural gas for heating, energy and cooking to fully electric costs roughly $40,000.

Priced-out data by major metropolitan areas in Washington

­­­	Median New Home Price	Income needed to qualify	All Households	# of households priced out of new homes	% Priced out now	# lost per $1000 increase
Bellingham, WA	679,288	198,576	100,222	88,341	88.1%	51
Bremerton-Silverdale-Port Orchard, WA	760,580	224,969	115,167	100,602	87.4%	16
Kennewick-Richland, WA	759,380	226,345	114,080	99,995	87.7%	62
Longview, WA	625,160	186,818	45,789	37,359	81.6%	30
Mount Vernon-Anacortes, WA	682,490	202,557	48,588	44,180	90.9%	5
Olympia-Lacey-Tumwater, WA	581,842	173,648	121,390	108,604	89.5%	82
Portland-Vancouver-Hillsboro, OR-WA	876,183	261,646	1,031,440	903,247	87.6%	137
Seattle-Bellevue-Kent, WA Division	896,949	265,139	1,306,796	1,023,175	78.3%	288
Spokane-Spokane Valley, WA	602,498	179,644	246,763	219,966	89.1%	111
Tacoma-Lakewood, WA Division	703,710	209,945	359,757	299,110	83.1%	229
Wenatchee, WA	682,413	201,778	50,482	46,548	92.2%	8
Yakima, WA	570,490	171,857	88,877	79,701	89.7%	32
Washington	747,199	221,293	3,198,675	2,681,167	83.8%	465

Source: NAHB 2024 Priced-Out Report