Increasing rent prices and the rising cost of living drive homeownership further and further out of reach for Washington millennials. While individuals can’t control some of the economic factors affecting the cost of living and home prices, there is work that can be done. 

To make homeownership more affordable for Washington millennials, state leaders must address the growing housing shortage, increasingly stringent energy code requirements and unnecessary taxes and fees on utilities and telecommunications. 

Housing shortage contributes to increasing rent

Washington millennial renters are priced out of becoming homeowners due to barriers that make building single-family homes and missing middle housing difficult and expensive. The rental market should be a step on the path to homeownership, and now many are struggling with just being able to afford rent, but it is turning into a trap many can’t break free from. 

As the cost of living increases, people’s ability to save for a down payment gets harder and harder, blocking potential homeowners from leaving the rental market. This drives prices up for everyone. To release the pressure on the rental market, we must tackle the housing shortage and build more homes people can afford.

A minimum of two years’ savings is required for down payments

A new report ranks Washington’s average annual salary as “the third highest in the nation after Massachusetts and New York” at $68,740.

However, according to a recent study by the Building Industry Association of Washington, a median-priced home in Washington selling for $643,400 requires an annual household income of $171,890 and a minimum down payment of roughly $19,000.

Based on the average savings rate in Washington, a household would need to save for roughly two years just to afford the down payment.

And this doesn’t factor in additional costs like new clothing, cleaning supplies, medications and other related necessities. Nor does it include basic costs associated with purchasing a home like inspections, appraisals and closing costs.

We need to address unnecessary and inflexible building requirements

In light of the rising challenges millennial renters face, we need leaders committed to a meaningful approach to the state’s housing crisis. To truly address the issue, our state needs to find ways to reduce all the costs the government has added to the home building process. 

We need more affordable homes to meet the growing population's demands, and the current restrictions and roadblocks prevent that from happening. Join us in this fight to make homeownership affordable for all. Sign up for the #CutTheCosts newsletter to get your 10-step action plan now.