One of the most common internet searches that brings people to our blog is "how expensive is it to live in Seattle?" We've talked about this before, but figured we could do some deeper analysis than what we've offered before.
The short answer to the question is: go to Sperling's BestPlaces Cost Of Living Comparison, enter your current salary, and compare your current city to Seattle to see how much your salary would need to increase to maintain the same lifestyle. Overall, the cost of living in Seattle is 32% more than the national average. We've found the difference to be less, but we've also made adjustments in our lifestyle to minimize the higher cost of living here. Keep reading for a more detailed analysis of how expensive it is to live here.
Job Market
The first thing many people interested in moving here would want to know is how the economy is doing. Seattle has a strong, diverse economy, compared to the national average, with major area employers including Boeing, Port of Seattle, Alaska Airlines, and Microsoft. The unemployment rate in Seattle was 6.3% in December 2008, compared to the national unemployment rate of 7.2%. Seattle is one of the most-educated cities in the US, with industries including aerospace, computer science, and biotechnology.
Housing
The median home price in Seattle is $591,000, which is 172% higher than the national average of $217,200. Trulia has a real estate overview of the city. As a compliment to the city, some people would say you get what you pay for. Seattle hasn't been hit as hard by the housing bubble as other cities, though home prices have still fallen some. Speaking from experience, the high cost for renting here impacted us more than any other increased expense. Also, based on my observations, while houses here are more expensive than in other places, they're also more modestly sized on smaller lots.
Also, from what I've observed, most condos start at around $300,000, though some start in the mid $200,000s. Also, apartments in the inner city without income restrictions start at around $1,000/month + parking costs. I'm sure rates start lower farther from the center of the city. To get a better idea of what you'd have to pay for housing, you'd have to do a more specific search.
Food
Food here costs 11% more than the national average. There is also more tasty, local produce here than in many other parts of the country. Still, since we've moved here, we've been paying a lot more for groceries than we did in Texas, partially because they're more expensive here and partially because we've been buying more groceries instead of eating out because eating out costs more here too. As we mention here, there just aren't as many places to eat for cheap, and it seems like the places here that are labeled as "$" cost as much as the places labeled as "$$" in Dallas/Fort Worth.
Utilities
The WhiteFence Index has details on utility costs in 21 major cities and the costs for utilities in Seattle are below the median of these cities. It estimates an average utilities bill of $274 and even breaks down costs by categories - phone, electricity, natural gas, etc.
From an anecdotal perspective, electricity costs here are lower than what we paid in Texas. We're paying a quarter of what we were paying in Texas per kilowatt and we're actually paying much less than that - like $10/month - because we don't have to run air conditioning (in fact, we don't have it). However, water costs are higher at about 35 hundredths of a cent per gallon. The two of us pay around $65 per month for water. Cable TV seems to cost more here, too, with basic cable costing $55/month through Comcast. We pay about $40/month for DSL internet, which also seems like a lot. Of course different companies offer different levels of service so utility costs will vary.
Transportation/gasoline
The price for gasoline in Seattle tends to be about 10% above the national average with gas prices in the area being among the higher gas prices in the nation. However, due to higher density than many cities and a well-used public transportation system, I would estimate that people in Seattle drive less than people in many other cities, so the monthly cost of gas here is possibly lower on average than in other parts of the country.
Taxes
Different places assess different taxes in different ways, but overall I'd say the tax burden here doesn't seem too bad, since Washington is one of the seven states that doesn't have personal income tax. Sales tax in Seattle is a bit high, ranging from 9% - 9.5%. Property Tax $10.17 per $1,000 of home value, which is 23% below the US average of $13.28 per $1,000 of home value. Overall, taxes here don't seem bad to me.
Summary
There is no single answer to the question "How expensive is it to live in Seattle?" because expenses are different for everyone. Many things do cost more in Seattle than in other parts of the country, but how much more depends on you and the choices you make. The higher cost for housing will be the most immediately noticeable for many people, but other things like food and gas cost more as well. To get a better idea of what it would cost for you to live here, you might want to start by looking for a home you might want and see how much it costs. For us, the cost increases were minimized because moving to Seattle allowed us to make lifestyle changes (selling a car and driving less) to save money. If anyone has any more questions, we'd be happy to answer in the comments or by email.
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19 comments:
great post. if there were pictures for each category it would have gone to six and busted the star scale, so it's good there weren't. seriously though, very educational and enlightening. I'm sure you'll get all the more random hits due to this post.
a Rickroll on this blog would be nice every once in a while.
Thanks for all the information. I will take this into great consideration, since it came from a young couple who moved there and seem very candidly honest about an in depth analysis. Very good insights! Thanks so much.
Thank You for the information it gave me a good idea of the difference. I am moving to seattle for university in the fall.I was wondering if things like clothes, room stuff and other misc. items are very costly. For example things I can find at target. etc thank you
It seems like things like clothes, home furnishings, and other stuff at Target and other chain stores aren't really any more expensive here than elsewhere.
I moved from Texas to Seattle four months ago and confirm the author's statement. Pretty much right on although I find the grocery bills to be pretty similar. Gasoline consumption is way down as we walk and use public transit whenever we can. That is really not an option in suburban Dallas-Fort Worth. Shedding all the costs associated with a second car contributes to offsetting the other higher costs. Property taxes are less as well. I was recently stunned by my electricity bill here, the two month bill for Nov-Dec was 3x the prior bill. Then I remembered that two month was half of what I use to pay for one month of electricity in the summer.
hi. thank you for all the great info! its helping a lot.
What are the good and bad areas of Seattle?
Good question, but a tough one to answer. All Seattle's neighborhoods are good, depending on how you define "good". Overall, Seattle is a pretty safe city to live in. Some neighborhoods are safer than others, or have more restaurants than others, or more entertainment, or more convenient transportation, or a more diverse culture, or more upscale living. It really depends on what you're looking for. And then of course there are even more options outside the city itself.
Hi,I am working in the UK and am going to move to Seattle to work soon. I don't have any clue about the tax system in the US....As far as I know, Washington state has no personal income tax but does it mean when you have e.g. $50,000 per year then you will have all $50,000 into your pocket (with no deductions)? I recall there are something like Medicare, Federal tax etc. in th US but do I need to pay for these (as a foreigner) and will they be taken from my salary automatically? Sorry for the questions if they are too stupid. Thanks a lot. Cardo
Unless you are self-employed, Federal tax and FICA (medicare and SS) tax are automatically taken from your pay check. If you are self-employed, you have to pay these taxes yourself quarterly I believe.
Correct, Washington state has no personal income tax. However, we do have sales tax (when you buy goods) and property tax (if you plan on owning a home), like most other states.
When you file your taxes by April every year, you are entitled to deductions depending on how big your family is and various other things. You may be owed a refund or you may owe more tax, it just depends on your situation and how you completed your W-4 when you were hired. Unfortunately the tax system in the US is very convoluted, but if you are just an employee at a normal job, then it shouldn't be too bad.
Hope that helps!
Thank you for sharing your move via this blog. My husband and I are considering moving to Seattle from Bedford (DFW), Texas. We want to get away from the heat and the Red State politics. Your blog is helping me plan our own move more effectively.
Hi,
We are planning to move from Seattle to Houston area.
Pro for Seattle -
Most beautiful place on earth - Mountains covered with trees, beautiful lakes, fantastic drives.
Great people, educated crowd. If you are in the computer industry by all means this is a paradise for you. No state tax, people are kind and helpful.
Cons- Hate the 230 days of gloomy weather - it is fun at first but it will affect your mental balance. If you are not working for Boeing, Microsoft, Amazon you will have no jobs. UW is the only place you can work if you have a life science background -they dont have funding and so no jobs.
I have visited Texas so here is my comparison on cost of living-
Grocery is the same in both places - believe me when I say this - I do a lot of research and so I am telling you this - If you have a Safeway card you can get stuff cheap and get a good deal on their gas price - we do not shop for gas anywhere else. If you are spending so much money on your grocery might as well get something in return. The Safeway card also gives you a good price on most of the stuff (compared to fredmeyer and walmart/Target). Another place to shop for stuff is Ross - I buy everything for my house there. Super cheap - kids clothes, bedding, house deco etc...
I was shocked to see the price of milk in Texas for a cowboy state - Milk was $4!! Fruits were expensive. Rest of the stuff was also expensive in HEB with no concession! And dont even talk about the other farmers market - they are so expensive.
Here in Seattle - We buy all our veges and fruits from a very nice wholesale market in Renton and spend only 75$ for a whole month of veges and fruits! We shop smart - it comes with some years of experience of talk to friends where to buy what stuff.
To be very honest I did not find any savings in Texas!
OK now the House price that everyone is talking about - here is the deal that no one will tell you about the two states
Seattle - house worth $500,000 property tax is 4,000 so your monthly mortgage comes to about $2289 per month,
Houston same house $2671 because of the property tax - 8000$/year (Redfin.com) When you sell the house you will not get your tax money back- right?
Only thing is you might get a slightly bigger house in Houston with more fancy stuff.
Bottom line - I dont think the houses in Seattle area or its suburbs are expensive when you think that when you sell your house you will get a good return on your investment and not pay too much property tax. If you are looking at a bigger better house yes the price is high but you are not paying high property tax so your monthly payment will be less/or same as Houston.
So overall I think they both are equal in terms of expenses.
Then why am I moving - two major reasons - One is the sunshine. I have visited every place in Washington and I love this place but I need my dose of sunshine for my well- being. Second Houston has loads of health industry and I have had a couple of offers there that I have refused in the past because I didnt want to leave my beautiful city. Other industries are also booming in Texas. People are also nice a friendly.
So its time for me to move for the sunshine and for a better job oppurtunity. But I know I am not going to a cheap place by any means. It will be just the same as Washington. So if there is anyone out there who thinks Seattle is expensive - I dont think so. You compensate for it somewhere or the other. Depends on how you live. There are some great restaurants here that are not so expensive. May be the rent might be the big expense - but if you live in the suburbs it should be OK. Bellevue, Kirkland, Bothell are some good neighborhood cities with great schools and it will be cheaper in terms of rent too. Shopping smart is another thing. Look for wholesale markets or china town where you can get some good stuff. And Safeway with your membership card will save you on grocery and fuel. Here is my take on the two states.
I am moving to Seattle within the next two years, and all of the above comments have been very helpful. I am planning to visit within the next six months, and this will not be a cheap expenditure for me, as travel is not cheap. However, I would like to know on average, how much money did you save before you made the big move? I am planning on selling all of my furniture, with the exception of my bed, and starting from scratch. Its less expensive, and easier to transport. Any suggestions?
Financial advisers generally recommend having enough cash available to live on for six-months. If you'll be moving and don't have a job lined up or will be buying a new home, that number should be higher. You'll want to make sure to give yourself a financial cushion just in case things don't quite go to plan.
I am thinking of moving to Seattle area from Forth Worth. I noticed that you made a similar move. What do you think of this idea? I am a recent college graduate and I lived in DFW area pretty much all my life (that I spent in the USA anyways). I do like places that are more ethnically and culturally diverse. Should I get a car? Is there anyway to email you?
I really appreciate your insight!
Hello
I am thinking of relocating to Seattle from DFW, Texas and I appreciate your blog and I am really considering moving to Seattle within the next year. I love Dallas and will always love it here but it is truly time to change the scenary. I have kids so any insight at all will be awesome for me so please continue to place your comments on here. Places for teenagers to hang out and for me to meet new people would be awesome as well.
Thank you so much for your very insightful information. My fiancé and I are moving to Seattle from Manhattan at the end of this year. He is being transferred so his job is lined up. My concern is I have a pet care business that is thriving in NYC, I've worked extremely hard to get where I am. Is a small business such as mine likely to succeed in Seattle? I'm very optimistic but also concerned. Any insight would be greatly appreciated.
Susan Farina
Luxury Leash Pet Care
Seattlites are very pro-small-business and love their dogs so I'm sure you will feel welcomed.
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