Thinking about moving to Seattle? Seattle has been one of the fastest-growing big cities in the U.S. since 2010, and it’s expected to add nearly 200,000 more people over the next 20 years. This growth is a result of the city’s vibrant culture and booming tech scene. Unfortunately, this does mean that Emerald City’s cost of living is becoming increasingly expensive. If you’re considering a move you may want to first work with a financial advisor to get your finances in order and create the right plan for you.
Home Prices in Seattle
If you’re looking into buying a home in Seattle, you might be a bit shocked by the high prices. Current housing sales data has the median home sales price at $800,000, which comes in higher than Portland, Oregon, and New York City. Possibly even more impressive than Seattle’s current prices are its long-term appreciation rates. According to NeighborhoodScout, home values in Seattle increased by 179.65% from 2000 to 2018. Additionally, the housing market prices have increased by over 11.5% in the past 12 months alone.
Renting in Seattle
While renting may often be better than buying in the Seattle area, it isn’t necessarily cheap. The average rent in Seattle is $2,334, regardless of the number of bedrooms. If you’re looking for a one-bedroom then the median rental cost is $1,700. A two-bedroom apartment averages out to $2,055 per month. With what it could cost you to purchase a home in the area, these prices might be more affordable for your situation. The down payment alone on a home purchase will be pretty sizable, on average.
Cost of Food in Seattle
There’s a lot of great food in Seattle. If you like seafood, you’ll be in heaven at Pike Place Market. Plus, ask any Seattleite about Dick’s Drive-In. They’ll be happy to tell you why it’s superior to In-and-Out.
If you’re living on a tight budget, however, you may only be able to enjoy Seattle’s restaurants on rare occasions. According to data from Numbeo.com, a meal at a typical Seattle dining establishment costs about $30 per person, as compared to the $25 national average.
Grocery prices follow the same trend, only with a larger difference. The monthly recommended food spending for a Seattle resident is $399.69. That’s nearly $75 more than the $324.20 national average.
As far as specific food items go, a dozen eggs and a pound of apples in Seattle costs $3.54 and $2.71, respectively. You can expect to pay a bit more for groceries when in Seattle than the average in the country. There are also plenty of open-air farmers’ markets that run from spring through autumn here, where you may be able to find great deals on fresh produce.
Cost of Transportation in Seattle
While Seattle does have a light rail system, it only serves a limited portion of the city. Most Seattleites either own a car or use the public bus system. The city also has a large contingent of cyclists, but given the number of hills and the lousy winter weather, it takes a high level of commitment to rely on a bike year-round.
The price of a single ticket for Seattle’s bus system costs $2.75, depending on the time of day and the distance of your trip. For regular riders, there’s the Orca Card, which serves as a single pass for the entire regional transit system. The cost of a monthly pass through the Orca Card system is around $100. This is about the same price as similar transit passes in LA and Chicago, which go for $100 and $105, respectively.
If you’re looking to drive, Seattle has some of the worst traffic in the country. Depending on the direction and distance of your commute, you could find yourself spending several hours a day in bumper-to-bumper traffic. That wastes time, not to mention fuel.
According to the U.S. Census Bureau, residents of Seattle have, on average, a one-minute longer commute to work every day. Seattleites spend nearly half an hour commuting every day. Gas prices are also expensive here, as GasBuddy indicates the average cost of a gallon of gas in Seattle for October 2022 is $5.29. That makes it the most expensive major city in Washington.
Cost of Energy in Seattle
It isn’t all bad news for current and future Seattle residents, though. There’s one important commodity that is cheaper in this city than almost anywhere else in the country: electricity. This is due in large part to a number of major hydroelectric power plants throughout the state.
As a result, the state of Washington has some of the lowest electricity rates around. A March 2019 report from the U.S. Bureau of Labor Statistics illustrates this. It specifically states that “the 11.0 cents per kWh Seattle households paid for electricity in March 2019 was 18.5 percent less than the nationwide average of 13.5 cents per kWh.”
Miscellaneous Cost of Living Facts
On a range of other important expenses, like healthcare and clothing, Seattle prices are near or slightly above the national average. One important factor to keep in mind is the Seattle sales tax. At 10.10%, it’s one of the highest sales tax rates in the country, which jacks up the price of nearly everything. The flip side, however, is that Washington has no personal income tax. So, while you’ll be spending more in Seattle on everything you buy, you’ll keep more out of every paycheck.
The Bottom Line
Overall, moving to Seattle can be terrific, especially if you like coffee or boats, but it can be expensive compared to other cities across the country. You’ll need to analyze how the costs in this article fit into your budget before taking the plunge. Your current location and cost of living could have a large impact on whether it’s the right fit for you.
Tips for Managing Your Long-Term Finances
- A financial advisor can be a great partner in navigating major life changes, like buying a new home or moving to a new city. Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Feel free to take a look over SmartAsset’s list of the top financial advisor firms in Seattle as well, if you’re looking for firms we’ve rated as the best in the area.
- Banking is a major part of every American’s financial life. In turn, having a bank near your home that you can access is important. For new and old residents alike, here are some options in the Seattle area: Anchor Bank, Yakima Federal Savings and Loan Association, Kitsap Bank, Columbia State Bank and First Federal Savings and Loan Association of Port Angeles.
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