SEATTLE — The high-tech worker hiring boom is driving up home prices in the Seattle area. The competition to buy a house is tight and high tech workers often have more than just a high salary to offer.
According to Red Fin CEO Glenn Kelman, "If you look at Google, Facebook, Amazon -- a few companies like that -- you're seeing they're increasing their employees in Seattle by about 20 percent. Home prices are increasing 13 percent year over year. The national average is half of that."
Kelman said high-tech workers are attractive to home sellers. They feel confident the high tech worker will have the salary to make sure the deal closes.
"There's so many people who come here who have very high wages, but also great stock options, plenty of dry powder when they're contemplating a bidding war and that's why you see so many houses in the area getting bid up," said Kelman.
Along with those stock options they can cash out, one tech worker told KIRO 7 she got $15,000 to move -- money that can be put towards a house.
Megan Slabinski works for Robert Half, a global staffing firm. She's based in Seattle and is busy finding top talent.
"We've seen a resurgence in relocation offerings in the last 12 to 18 months," said Slabinski.
She sees everything from covering moving costs, to paying mortgages on old homes. "I've seen more relocation packages that maybe provide a lump sum component. That's something anyone could use in any way they prefer," added Slabinski.
The increase in high tech workers is making buying a home nearly impossible. Andrew Chan is looking for a home in Ballard, Wallingford, or Fremont. He made four offers and missed out on all of them. "We've been up against sometimes 14 offers. Some of them are cash, some are waving a lot of contingencies," said Chan, "I knew it was going to be tough, not this tough."
Chan moved to Seattle from Toronto six years ago to work for Amazon. Now he's at a startup in Pioneer Square. He's finding himself making offers against people he worked with at Amazon and is seeing high tech workers brand new to the area.
"There's companies moving in like Drop Box and Alibaba, a really big surge of people coming in looking for homes," said Chan.
He's working with Windermere Broker, Susan Leonardson. "Now's the perfect storm of supply and demand and who wants it the most," said Leonardson. She is determined to find Chan the right home. After four offers fell through, they adjusted their strategy to be ready to compete as homes get bid up.
"We were at one price point earlier in the year. Now we've kind of come down so we can be competitive and go $100,000 over if we need," said Leonardson.
After five months and five offers, Chan is in the middle of closing on a home in Ballard. He looks forward to moving in just in time to enjoy the end of the summer.
KIRO
