Seattle has many things to boast of, which is why people flock to the city hordes! It’s a prominent tech center housing 2,244 companies, including Microsoft and Amazon. Because of the immense contribution of the tech industry, the economy has grown by an impressive 22.1% within 10 years! In addition, data reveals that over 60 percent of adults living in the city are college graduates! Do we need to hear more about the city’s successes? Nope! But before we forget, let us also add that Seattle is a stunningly beautiful city, thanks to its numerous water bodies, green spaces, and mountains.
All said and done, Seattle is a big-budget city to live in. You could say that the city is affordable compared to San Francisco or NYC. But when you consider cities like Boise or Portland, you might be in for a shock! Against the cost of living index for Washington (118.7) and that of the country in general (100), the city has a score of 172.3! Whether you decide to live in the city or not, let’s walk you through the costs you’ll incur if you eventually move to Seattle.
Here is everything you need to know about the cost of living in Seattle:
1. Rental Expenses in Seattle
The rapid development of the tech industry has seen the generation of employment opportunities aplenty, resulting in a spurt in the city’s living expenses. After all, it’s assumed that the more people earn, the more they can pay! Engineers from the Bay Area have moved to the city to cut down on their living costs. Rents have shot up by 20% within five years and reached their highest in 2017. The best part about the increase in the number of people moving to Seattle is that many new apartments started coming up to accommodate them. Statistics tell us that Seattle spent the most on multi-family constructions than 25 of the country’s biggest metro cities from 2000 to 2016! Incredible, isn’t it?
Rental prices had declined due to the global pandemic, and there were minor ups and downs occasionally. However, the market has now started recovering, with the prices going up by 12.04% compared to 2020. Today, the rent for a one-bedroom apartment totals $2,197.
As always, rental prices vary from one neighborhood to the next. Also, they’re pricier when you’re closer to the city’s core and keep falling as you move away. So, should you be looking for something high-end, you could explore South Lake Union, Denny-Blaine, and Belltown. The list also includes Ballard, Pioneer Square, Capitol Hill, where prices range between $2,078 and $2,134. As far as reasonably-priced neighborhoods go, check out Central District, where a one-bedroom apartment is priced at $1697, and Green Lake, where the rent is $1827 on average. Some more names that pop into our heads include Innis Arden, Richmond Beach, and the Highlands, where you can expect to pay $1322 monthly.
In the end, getting a roommate might be the perfect way to split the rent, utilities, and other expenses and save money for a rainy day!
2. House-buying Expenses in Seattle
Surprisingly, the demand for buying a house is far greater than the number of active homes available for selling. Therefore, those who wish to sell their homes don’t have to wait too long because you always have prospective buyers waiting in line to buy them.
In February 2021, the median home price in Seattle stood at $816,718, while the national median amounted to $312,728. In other words, the city median home price is more than twice that of the country-wide median! In Magnolia and Queen Anne, residential communities located close to Downtown Seattle, the selling price of houses exceeds a million dollars. On the other hand, if we consider Rainier Beach and Columbia City, communities in South Seattle, you might come across homes priced at $679,254, a tad more affordable.
Finally, one thing that stands out about the city is its appreciation rates that last for long periods. For example, per NeighborhoodScout numbers, home prices shot up by 179.65% between 2000 to 2018!
3. Food and Grocery Expenses in Seattle
Seattle has a range of cuisines to die for, so food lovers will have a blast here! The city’s home to numerous boutique bistros, fantastic eateries, beer bars, and coffee shops, so it might be difficult for you to refrain from checking them out. It’s wise to keep a food and groceries budget to ensure that you don’t overspend.
You can either cook all your meals at home or eat out. The best thing to do is to do both in moderation. Food expenses in the city amount to 27.1% more than the national average. If you’re single and have a full-time job, expect to spend $3792 on food and groceries annually, as stated by numbers from MIT. Eating alone would cost you about $20, provided the restaurant you go to has affordable prices, although you’d have to forgo alcohol and appetizers. But be prepared to pay an average of $85 if you choose to dine with someone at a medium-priced restaurant and order three courses.
Here are the prices of some grocery items from Numbeo to give you an idea of what you might be spending if you decide to cook your own meals and snacks:
- Milk (a gallon): $3.63
- Bread (a loaf): $3.30
- Eggs (a dozen): $3.35
- Ground beef (1 pound): $6.74
- Chicken fillets (1 pound): $5.53
To access fresh fruits and vegetables, cheeses, meats, seafood, and home-style bread, explore the many farmer’s markets in the city, and you won’t be disappointed! You can also find low-cost groceries in places like Trader Joe’s and Costco, founded in Seattle in the early 80s!
4. Utility Expenses in Seattle
The weather in Seattle is lovely, with temperatures hovering around 70 degrees. It might get pretty chilly for a few weeks in winters, while summers experience 90 degrees or more for no more than a couple of days. So, heaters and air conditioners might not need to be used extensively.
After rent, your next recurring cost consists of utilities, so if you’re setting a budget for all your living expenses, make sure you include these too. For a 915-square-foot apartment, the monthly utility bill, comprising heating, cooling, electricity, garbage, and water, totals $215.42 per Numbeo’s data. Internet is another necessary expense, so you might have to include another $61.21 in the total bill. Your overall expenditure on utilities comes to 9.4% of the national average, which isn’t anything to freak out over!
5. Travel Expenses in Seattle
Travel expenses are another critical part of your cost of living budget in Seattle. Because a car isn’t necessary to get around in the city, it gives you ample scope to save money! Singles need to dish out $4,900 per year as transit expenses. At the same time, if you have a working wife and a kid, expect to pay $11,186 per year!
Seattle’s public transportation facilities are efficient and continue to grow to benefit residents. The two primary transit systems include King County Metro Transit and Sound Transit. To access the LINK Light Rail, adults need to pay anywhere between $2.25 to $3.25 for a one-way trip based on the area they begin their journey from and the distance to their destination. Purchase an ORCA card for access to all transit systems, whether buses, the Sounder train, or the LINK Light Rail.
If you prefer to travel the city by bus, you need to pay $2.75 one-way. Getting a monthly pass will cost you $99 and help you put away some money for other crucial expenses. Interestingly, Seattle scores high on walkability and doesn’t fare too badly in biking. In other words, you have two additional options for reaching wherever you need to go. While biking is an ideal way to travel and keep yourself fit, brace yourself for the city’s numerous hilly regions. The city’s multiple bike trails will help you reach your destination in no time. You could either buy a bike or rent one for $9 an hour. If you need it for longer, you can rent it for $75 a day.
Although traffic in the city is known to be a serious concern, you might still want to drive around to explore the nature areas of Seattle. In that case, be ready to pay $3.74 per gallon of gas, which is expensive. In a word, residents incur costs 40.8% more than the national average.
6. Healthcare Expenses in Seattle
Healthcare expenses form another significant area that you should give due importance to because you never know when a medical emergency might arise.
Seattle has a booming healthcare system comprising multiple hospitals, including the University of Washington Medical Center and Seattle Children’s Hospital. Residents incur medical expenses 27.6% higher than the national average. MIT has calculated using data from the Bureau of Labor Statistics and the Agency for Healthcare Research and Quality that singles with full-time jobs need to spend $2,206 annually toward medical expenses. If they have a spouse and a child, the costs amount to $6,380 annually. For a general health checkup, you need to dish out $137. In summary, it’s imperative to either be financed by your employer or make your own arrangements for medical insurance because it might deplete all your savings when the time comes.
7. Entertainment Expenses in Seattle
Two things that can help you stay fit, mentally and physically, are fitness and entertainment. Seattle provides its residents with a stunning natural landscape to use for exercising. You can choose from a plethora of recreational activities to stay energetic and fit.
On the other hand, if you feel comfortable working out in a gym, make sure you have the funds to pay $55.93 monthly on gym memberships. But it’s far more economical to use some space in your apartment (if you can spare any) and use it as a place to exercise by buying some equipment.
While we’re on the topic of exercising, you can combine it with entertainment by exploring the Pike Place Market on foot. If you love the solace nature provides, head over to Waterfall Garden Park in Pioneer Square and take a walk. Olympic Sculpture Park is yet another place to admire the beauty of nature and art. These places don’t require you to pay a penny.
As far as recreational opportunities go, catch a movie if you’re a cinephile. Remember that $14 is just for the ticket, and if you want drinks or popcorn, you need to dish out additional cash. There are many other notable attractions you can drop by, although they’re not for free. For example, you could explore the Seattle Art Museum for $19.99 a ticket or the Woodland Park Zoo for $17. Then there’s the Museum of Pop Culture, where ticket prices range from $25 to $32. Check out the Space Needle for $35 and above. Last but not least, should you be interested in sports, try your hand at a game of tennis for $35 per hour.
8. Income requirements in Seattle
As you’re already aware, Seattle’s popularity as a tech center has led to a rise in rental prices. But what’s your preference? Do you wish to live in a one-bedroom apartment or a two-bedroom one? If you see yourself in the former, your yearly income should be $87,660 and if a two-bedroom apartment seems more suitable to you, make sure your annual earnings are $75,780. When in doubt, always apply the 30% rule. That way, you won’t have to worry about spending more than 30% of your gross earnings on rent.
In Seattle, a person with a full-time job needs to earn a minimum of $19.57 ( i.e., the living wage) to remain above the poverty limit. The downside of the living wage is that it doesn’t include costs for recreation, vacation, or dining. Neither does it have any scope for savings or investments.
According to Payscale.com’s data, residents in Seattle earn an average income of $83,000 annually. Builtin.com’s numbers reveal that the earnings of tech employees in the city fall between $103,492 and $159,066.
Considering all professions across Seattle, the average per-hour wage stands at $35.64 while the national average is $27.07 (hourly). So, let’s cheer for Seattle! In addition, companies with over 500 employees have a minimum wage of $16.69 hourly. Finally, companies with fewer than 500 employees can offer them $15 per hour if they commit to paying $1.69 as medical insurance.
9. Taxes in Seattle
The sales tax rate in Seattle stands at 10.25%, among the highest in America. It’s a combination of the state tax rate of 6.5% and a 3.75% percent tax rate from the city of Seattle. So, remember to add the sales tax to the taxable products you buy to calculate the total payable amount.
What’s hard to believe is that Washington doesn’t levy any personal income tax on its residents. Therefore, stuff like clothing or groceries might require you to spend more, but at the same time, you’ll get to save more. And more savings is always a good thing, isn’t it?
Conclusion
So, are you ready to hop on a plane and move to Emerald City? We sure hope so! It’s undeniable that the city is pricey, and the many families moving to the city have earnings both higher than $200,000 and lower than $50,000! So, when potential residents have the power to spend money, rental rates are bound to skyrocket. Nonetheless, don’t let it discourage you from becoming a future resident of the city. Instead, cast a wider net on more notable and affordable communities, and you should be able to find something that suits not only your requirements but your budget too!
