Washington Residents Getting Gouged By Housing Costs

If you're looking to buy a home in Washington State, whether it's your first or your next, buckle up because you are in for a wild financial ride.  We all know the cost of homes have skyrocketed since the pandemic, to the tune of 54% higher on average than BC (Before COVID).

Throw in the supply chain issues that wreaked havoc during those years, plus Washington State's law requiring home assessments be 100% of a home's value, and you have an escalating cost cocktail.

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When you apply for a home loan the lender will look at your debt to income ratio as a key ingredient in your loan terms.  The ideal ratio is 36% or less, but good terms can still be presented in you are in the 45% or less range.  When you get above 50%, things get a little tougher.  By the way, those percentages are based on preexisting debt, not how much more you will take on with your new home.

That burden is become greater on Washingtonians.  According to the data crunchers at Wallethub.com, we pay some of the highest home costs in the nation.  Their methodology focused on three core categories, the costs of rent, mortgage, and home energy.  Let's look at why Washington State is so high.

It's Not Because of Energy Costs.

Washington State comes in 37th overall in energy costs.  We can thank hydroelectric for a large chunk of that.  Hydro is cheap and plentiful in the PNW and we get to take full advantage.

If we are around the bottom third in energy costs how are we one of the highest?

A Huge Part Is Average Monthly Mortgage Principal & Interest Payments

THIS is where it digs into your pocket.  Washington State is 4th overall in that category.  We are also in the top 5 with regard to the average cost of housing as % of median monthly household income.  Average principal an interest payments are north of $2,750 per month and we sit at roughly 34% in average housing cost to median income.

If you'd like to dive further into the data, and read the expert's tips for how to save on those costs, click here.