With interest rates increasing in an effort to corral rampant inflation, for many Americans housing has never seemed so far out of reach. Given the unique nature of Snohomish County, many are asking the question of, “why are prices so high?” To adequately answer the question at hand, we need to take a step back and look at a variety of considerations.
One factor affecting home prices in our area is that Snohomish County offers a high quality of life. Boasting a blend of suburban and urban conveniences along with natural beauty, the county is home to a variety of outdoor recreational opportunities such as hiking and skiing, as well as cultural and entertainment possibilities in nearby Seattle.
The many lifestyle options have made the area appealing to a broad demographic, from young professionals to retirees. In fact, according to the U.S. Census Bureau, the county’s population aged 25-44 grew by 8% from 2015 to 2020, while the population aged 65 and older increased by 20% during the same period.
Another related factor is the massive population growth. For the last 10 years, Snohomish County has undergone a steady increase in population. According to the U.S. Census Bureau, the county’s population grew by nearly 15% from 2010 to 2020. This population surge has been driven by both natural growth as well as migration from other parts of the state and country. With demand for housing outpacing supply in the area, property values have surged to new highs.
Nevertheless, perhaps the largest, overarching issue is that the county’s supply of housing has not kept up at a sustainable rate. A limited inventory of available homes has created an extremely competitive market, where multiple buyers often bid on the same property, driving prices even higher.
Adding to the supply issues, new housing developments often face challenges. With issues such as overregulation in zoning and environmental restrictions as well as the high cost of land and construction, housing development has not been able to keep up with the surging demand for housing in the area. Such factors contribute to a slower rate of new housing stock entering the market, further driving the supply-demand imbalance.
Further exacerbating the problem are economic imbalances. With an enormous influx of job opportunities in the past two decades, local cities have been working overtime to catch up with market trends. The county, as part of the greater Seattle metropolitan area, benefits from its proximity to major employers such as Boeing, Microsoft, Amazon, and other tech giants. The economic boom in the region has caused the demand for housing to soar even higher.
The effects of these high prices, of course, have had varied impacts on residents. For homeowners, rising property values have increased home equity and wealth. However, for prospective buyers, especially first-time homebuyers and lower-income families, the high prices have created barriers to homeownership.
Looking to alleviate the negative impacts of these high prices, REALTORS® believe that resolving the issue of exorbitant housing prices in Snohomish County requires a multifaceted approach. All levels of government must explore new strategies to increase housing supply and affordability. The Association of REALTORS® advocates for policies such as revising zoning laws to allow for higher-density developments, instituting market incentives for development, and streamlining the permitting process for new construction among others.
In conclusion, the high housing prices in Snohomish County are a result of complex economic and social dynamics. While these factors have created many challenges for prospective homebuyers, ongoing efforts to address housing affordability and supply hold promise for a more balanced and accessible housing market in the future.
For more information about buying or selling a home, be sure to work with a REALTOR®, a member of the National Association of REALTORS®. Snohomish County Camano Association of REALTORS® is the voice for real estate in Snohomish County. If you have questions for The Expert about real estate email us at [email protected], or visit www.sccar.org for more information
