Rent vs buy in Washington
With today's numbers over 7 years, 26 of the 26 cities of 50,000+ favor renting.
Rent or buy across Washington's cities
| City | Verdict | 7-year result | Break-even (up to 30 yrs) | Typical home | Rent /mo |
|---|---|---|---|---|---|
| Seattle | Rent | renting wins by $128k | year 21 | $822,572 | $2,227 |
| Vancouver | Rent | renting wins by $39k | year 12 | $498,160 | $1,803 |
| Redmond | Rent | renting wins by $278k | none in 30 years | $1,293,017 | $2,577 |
| Sammamish | Rent | renting wins by $281k | year 27 | $1,489,177 | $3,350 |
| Shoreline | Rent | renting wins by $137k | year 25 | $772,801 | $1,971 |
| Lakewood | Rent | renting wins by $56k | year 15 | $510,189 | $1,734 |
Data: Zillow Home Value and Observed Rent indexes. The verdicts come from our rent vs buy method with 20% down over 7 years.
Our take on Washington
For each of Washington's 26 cities of 50,000+, renting comes out ahead over 7 years. A typical home costs $588k, and the median rent of $1,760 a month compares with $1,413 across the US. In Seattle, you pay $822,572 for a typical home, and monthly rent is $2,227. Over 7 years, renting wins by $128k. Year 21 is when you finally break even. In Bellevue, renting comes out $294k ahead on a $1,386,450 home with rent at $2,759, and you don't break even in 30 years.
The gap gets tighter in cheaper cities. In Spokane, a typical home is $392,803 and monthly rent is $1,483. Renting leads by $26k, and you'd break even in year 11. A $427,901 home with $1,654 rent in Kennewick puts renting ahead by $21k. You break even at year 10, and we see no shorter wait anywhere in the state.
If you stay put longer, the numbers for this state work in your favor. Over the last 10 years, home prices gained 8.3% a year, and the long term pace is 5.3% a year. Bills for owners also stay lower. Property tax takes 0.81%, compared with 0.94% in the US. The yearly homeowners insurance cost is $1,173, compared with $1,308 across the country. Across the state, 36% of households rent, slightly more than the 35% share in the US.
Our take: in Washington, renting is the better choice unless you actually stay put for a long time. In the cheapest cities we track, you can't do better than renting until year 10.