Seattle combines high tech salaries with relatively low property taxes (0.9%), but home prices averaging $750K-$1.2M still make affordability a challenge. Here's exactly what you can afford at every income level from Amazon, Microsoft, Google, and beyond.
Seattle Neighborhood Price Breakdown
Seattle's housing market varies dramatically by neighborhood. Here's what you'll pay in 2025:
Central Seattle ($750K-$1.2M)
- Capitol Hill: $850K median for 2BR condo, walkable to tech offices, nightlife
- Ballard: $900K median for 3BR home, family-friendly with breweries and waterfront
- Fremont: $825K median, artsy vibe, close to Amazon campus
- Queen Anne: $950K median, hillside views, quieter residential feel
Eastside Tech Hub ($1M-$1.5M)
- Bellevue Downtown: $1.2M median, high-rise condos with Microsoft proximity
- Redmond: $1.1M median, family homes near Microsoft campus
- Kirkland: $1.3M median, waterfront premium, top-rated schools
Affordable Suburbs ($550K-$750K)
- Renton: $650K median, Boeing area, more space for money
- Shoreline: $700K median, North Seattle, good schools
- Burien: $550K median, South Seattle, near airport
Property Tax Impact: At 0.9% effective rate, a $900K home costs $8,100/year ($675/month) in property taxes,significantly lower than Austin's 1.8% or Chicago's 2.1%.
Calculate Your Seattle Home Budget
Use the 28/36 debt-to-income (DTI) rule to determine what you can afford:
- Front-end DTI (28%): Total housing costs (mortgage + taxes + insurance + HOA) should be ≤ 28% of gross monthly income
- Back-end DTI (36%): Total debt payments (housing + car + student loans + credit cards) should be ≤ 36% of gross monthly income
Real Example: $150K Salary
Gross monthly income: $12,500
Max housing payment (28%): $3,500/month
Property tax estimate (0.9%): ~$540/month for $720K home
Homeowners insurance: ~$150/month
Available for mortgage: $2,810/month
Home price you can afford (7% rate, 20% down): $650K-$720K
→ Use the Home Affordability Calculator to run your specific numbers with your income, debts, and down payment.
Key Considerations
- HOA fees: Seattle condos average $400-$800/month (Bellevue can hit $1,200/month)
- Earthquake insurance: Optional but recommended, adds $800-$2,000/year
- No state income tax: Washington has no state income tax, giving you ~9% more take-home pay vs California
Tech Salary Affordability Scenarios
Here's exactly what Seattle tech workers at Amazon, Microsoft, Google, and Meta can afford at typical compensation levels:
| Annual Income | Role Example | Max Home Price (20% down) |
Monthly Payment (PITI) |
Neighborhoods |
|---|---|---|---|---|
| $120K | SDE I / Early Career | $500K | $3,360 | Renton, Shoreline, Burien |
| $180K | SDE II / IC Engineer | $720K | $4,900 | Fremont, Capitol Hill |
| $250K | Senior SDE / Manager | $1M | $6,800 | Ballard, Bellevue, Redmond |
| $350K | Principal / L6+ | $1.4M | $9,500 | Kirkland, Downtown Bellevue |
| $500K | Director / Senior IC | $2M | $13,600 | Mercer Island, Madison Park |
Note: Calculations assume 7% mortgage rate, 20% down payment, 0.9% property tax, $200/month insurance, and no HOA fees. Actual affordability depends on your existing debts (student loans, car payments, etc.).
Dual-Income Households
Two tech workers earning $180K each ($360K combined) can afford $1.4M-$1.6M, comfortably covering most Seattle neighborhoods including premium Eastside locations.
Seattle-Specific Considerations
Tech Sector Volatility
Seattle's economy is heavily concentrated in tech (Amazon, Microsoft, Google, Meta, startups). The 2022-2023 tech layoffs affected 40,000+ workers in the region. Before buying:
- Ensure 6-12 months emergency fund (higher than typical 3-6 months)
- Consider ARMs only if you expect to move within 5 years
- Avoid stretching to your max budget if your company is volatile
Condo Warrantability Issues
Many Seattle condo buildings face "non-warrantable" status due to:
- Pending litigation (common in Seattle's competitive market)
- High investor ownership ratios
- Deferred maintenance or HOA underfunding
Impact: Non-warrantable condos require 25-30% down and higher interest rates. Always verify warrantability before making an offer.
Earthquake Risk & Insurance
Seattle sits on the Cascadia Subduction Zone. Standard homeowners insurance excludes earthquake damage:
- Earthquake insurance cost: $800-$2,000/year for $800K home
- Deductibles: Typically 10-25% of home value ($80K-$200K out of pocket before coverage)
- Decision: Most Seattle homeowners skip it and self-insure, but evaluate your risk tolerance
No State Income Tax Advantage
Washington's lack of state income tax means you keep more of your paycheck vs high-tax states:
- vs California: Save ~9.3% on income over $61K ($14K/year on $150K salary)
- vs Oregon: Save ~9.9% on income over $125K
- vs New York: Save ~6.5% on mid-tier income
This tax savings can offset higher Seattle property prices when comparing total cost of living.
School Districts Matter
Top-rated school districts command 15-25% price premiums:
- Bellevue School District (Eastside): +20% premium
- Lake Washington School District (Redmond, Kirkland): +18% premium
- Northshore School District: +15% premium
Frequently Asked Questions
What salary do I need to afford an $800K home in Seattle?
To comfortably afford an $800K home with 20% down, you need approximately $180K-$200K annual income. This assumes minimal other debts, 7% mortgage rate, and keeping your housing payment under 28% of gross income. With a $160K down payment, your monthly PITI would be around $4,900 (mortgage $4,200 + taxes $600 + insurance $100). At $180K salary, that's 27.2% of your $14,750 gross monthly income,right at the comfortable threshold.
Is Seattle property tax lower than other tech hubs?
Yes. Seattle's effective property tax rate of 0.9% is significantly lower than Austin (1.8%), San Jose (1.1%), and especially Chicago (2.1%). However, Seattle's higher home prices mean absolute tax dollars are still substantial. On an $800K home, you'll pay $7,200/year ($600/month) in Seattle vs $14,400/year in Austin. California's Prop 13 caps mean older California homeowners pay less, but new California buyers pay similar 0.8-1.0% rates on much higher purchase prices.
Should I buy in Seattle or keep renting?
Buy if you plan to stay 5+ years and have stable tech income with strong emergency savings. Seattle's rent-to-price ratio is actually better than SF or NYC, meaning buying typically pencils out in 5-7 years. Use our Rent vs Buy Calculator to compare your specific scenario. Key factors: Can you afford 20% down to avoid PMI? Do you have 6-12 months emergency fund given tech volatility? Are you willing to stay put through potential market downturns?
How much do I need for a down payment in Seattle?
Aim for 20% down to avoid PMI and get the best rates. On Seattle's $800K median, that's $160K. If you're an Amazon or Microsoft early-career engineer ($120K-$150K), budget 3-4 years of aggressive saving ($40K-$50K/year) to hit this target. FHA loans allow 3.5% down ($28K on $800K), but you'll pay PMI and higher interest rates. For jumbo loans over $766,550 (common in Seattle), most lenders require 20% down minimum.
Which Seattle neighborhoods offer the best value?
For pure value (space per dollar), look at Renton, Shoreline, and South Seattle (White Center, Burien). You'll get 30-40% more house than central Seattle. For walkability + value, Ballard and Fremont offer good balance at $850K-$900K median. For long-term appreciation, bet on transit-oriented development along light rail lines,expect 10-15% premiums when new stations open. Avoid over-paying for schools if you don't have kids; you can always move to a school district later.