Our Historic Population Growth

Residents of the greater Seattle area have all been feeling the pressures of population growth over the last several months. Not only are we seeing increased activity in the housing market, but plenty are moving to our area to take advantage of the economy, new technology jobs, quality of life, and more.

A new study from The Puget Sound Regional Council reported by Geek Wire states that Seattle and the surrounding counties have added 86,320 new residents between April 2015 and 2016. This marks our largest population gain this century. When you average that out, we’re looking at about 236 new people calling Seattle home every single day. King County saw the biggest growth at 2.5 percent with 52,300 people.

If we continue with numbers at that rate, the Puget Sound area will likely pass the 4 million resident mark by the time you read this.

As Geek Wire reports, we can largely attribute this growth to the expansion of the region’s tech booms and major employers such as Amazon, Microsoft, and Boeing. The success of these companies has helped to spark a growth in the startup environment as well. Additionally, dozens of big companies have decided to set up their engineering centers here.

Geek Wire continues their analysis of the report and our population growth by reminding us that this isn’t the first time we’ve seen expansion like this. “The region’s population has grown by more than 80,000 people in one year five times since the 1960s.” They quote the report stating, “these rapid population changes have occured over two to three years before settling back to a steadier rate of change.” Looks like we may be seeing this continued growth for another year or two.

Read the full story from Geek Wire.

Homebuilder Sentiment Rises in June

As Americans are starting to feel more optimistic about purchasing homes, homebuilders are feeling hopeful about their sales. This is a welcome relief after a weak start to the spring home-selling season. During that time both parties were concerned about their prospects in the housing market. A recent article from The Seattle Times discusses the causes and importance of this positive change in sentiment among both groups.

How can we determine a rise in sentiment among home buyers and homebuilders? People have always understood the benefits of home ownership, so while the desire and demand have been constant, many factors deterred potential homeowners from investing in real estate. Lately we’ve seen that steady job gains and low mortgage rates are encouraging those people to buy new homes with less risk. That drives home construction and helps support the economy. This is where homebuilders come in (feeling optimistic).

Though new homes represent a small fraction of the housing market, they have an outsized impact on the economy. According to data from the National Association of Home Builders (NAHB), each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue. While we could just assume that new, steady jobs boost morale, the NAHB/Wells Fargo have an index that actually quantifies builder sentiment. Readings above 50 indicate more builders view sales conditions as good rather than poor. As of last Thursday, the reading was at 60, which is the highest it’s been since January.

Although the housing market has yet to recover from the consequences of the downturn a decade ago, rising sentiments prove that we are making progress. According to Robert Dietz, the NAHB’s chief economist, the latest builder survey results indicate that the housing market “should continue to move forward in the second half of 2016.” That makes us feel pretty optimistic, too.

Read the full article at The Seattle Times.

No Wage Stagnation on the Eastside

Wages on the Eastside are up

Last month’s U.S. Census report showed that middle-class incomes nationally were stagnant, confirming a trend that has been widely reported. But when 425Business magazine crunched the numbers for a local perspective, the picture changed. Unlike the U.S as a whole, median incomes in Bellevue and the greater Seattle area have risen – and wage growth has been particularly strong on the Eastside. A booming technology industry has made the Puget Sound area’s economic growth a standout.

Home prices soar as well

A steady influx of well-paid tech workers has boosted the local real estate market. With an increasing demand for homes, and not enough supply to meet the need, home prices have soared this year. The latest figures from the Northwest Multiple Listing Service show the median price of a single family home is up 10 percent over last year. If you’re considering selling, you’d be hard-pressed to find a better time to get top dollar for your home.