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Bellevue, Washington: Rising Home Values and Shifting Ownership in a Tech Hub
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Bellevue, Washington, a vibrant city located east of Seattle, has experienced significant changes in its housing market over the past decade. Known for its thriving tech industry and high quality of life, Bellevue has seen fluctuations in homeownership rates, alongside substantial increases in both average home prices and average rent prices.
The relationship between homeownership rates and average home prices in Bellevue reveals an interesting trend. In 2013, the homeownership rate was 57%, with an average home price of $513,099. As home prices steadily increased, reaching $953,999 in 2018, the homeownership rate dropped to 53%. This inverse relationship continued, with the homeownership rate falling to 50% in 2019 as average home prices approached $1 million. However, there was a slight recovery in homeownership to 53% by 2022, despite average home prices soaring to $1,496,153.
Federal interest rates have played a role in shaping homeownership trends in Bellevue. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates remained relatively stable around 53-58%. As interest rates began to rise from 2016 onwards, reaching 2.16% in 2019, homeownership rates dipped to their lowest point of 50%. Interestingly, despite a sharp drop in interest rates to 0.08% in 2021, homeownership only marginally increased to 53%, suggesting other factors were influencing the housing market.
Renter percentages and average rent prices have shown a generally positive correlation. In 2013, 43% of Bellevue residents were renters, with an average rent of $1,494. As the renter population increased to 47% in 2015, average rent rose to $1,693. This trend continued, with renter percentages reaching 50% in 2019 and average rent climbing to $2,119. By 2022, while the renter percentage slightly decreased to 47%, average rent had surged to $2,432, indicating a tightening rental market despite a slight decrease in the renter population.
In 2023 and 2024, Bellevue's housing market showed signs of stabilization. Average home prices, which peaked at $1,496,153 in 2022, decreased to $1,376,992 in 2023 before rising slightly to $1,433,993 in 2024. This coincided with federal interest rates reaching 5.02% in 2023 and 5.33% in 2024, the highest levels in over a decade.
Looking ahead, predictive models suggest that Bellevue's housing market will continue to evolve. Average home prices are projected to maintain their upward trajectory, albeit at a more moderate pace, potentially reaching around $1.6 million by 2029. Average rent prices are expected to follow a similar trend, possibly exceeding $3,000 per month within the next five years.
In summary, Bellevue's housing market has demonstrated a complex interplay between homeownership rates, average home prices, and average rent prices. The city has experienced a general trend of increasing housing costs, both for buyers and renters, while homeownership rates have fluctuated. The recent stabilization in home prices, coupled with high interest rates, suggests a potential shift in the market dynamics. As Bellevue continues to grow and attract new residents, these trends will likely shape the city's housing landscape in the coming years.
