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Technology Hiring Having Direct Impact on Seattle Home Prices

"For every 1% increase in technology workers, there's a roughly half-percent increase in home prices above and beyond the national rate of appreciation." That's the findings of Redfin, who dug deeper into the correlation between tech workers and rising housing prices. Here in Seattle, we've seen a 21 percent increase in tech workers year-over-year while at the same time seeing 12.7 percent home price growth during the same period. That makes Seattle (along with Boston) the fastest-growing tech employment city right now. With tech companies expanding and home prices rising, it's no wonder Silicon Valley folks are flocking north.

As you probably figured, Amazon plays a big part in the story, although perhaps not as big as you might imagine.

In Seattle, nearly 1% of the entire metro area population, which stretches from Everett to Tacoma, is employed by Amazon. Amazon employs as many people in Seattle as live in the entire suburban city of Kenmore, and it adds another Kenmore every four years. The study points out that Amazon is just one of many tech employers in the region. Microsoft employs nearly 100,000 people in the region, mostly in Redmond. Facebook is ramping up it's Seattle office big-time. And then there's Google, Apple and plenty more.

So when you find yourself on the losing side of a bidding war for a Seattle-area home, don't necessarily blame Amazon employees. But there's a decent bet you'll be going head-to-head with someone in the tech industry.
· What Happens to Home Prices When Technologists Come to Town… [Redfin]
· Relocation Watch [CS]
· Tech worker influx deriving up home prices [Seattlish]

Redfin

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