Homes away from downtown Seattle are appreciating faster than homes within a short commute

A neighborhood on Lake Washington in Seattle. An autumn day in the Pacific Northwest.

MarkHatfield / Getty Images / iStockphoto

Housing prices in the Seattle metropolitan area reflect a new trend that is evident in many of the largest subways in the country: housing in the heart of the city is valued more slowly than housing outside of downtown.

Seattle homes, which have appreciated the most in value over the past two years, are 51 to 60 minutes from downtown, according to a new study by Zillow. The value of these homes has risen by an average of 39.5% since 2019, according to the study. In comparison, the value of homes in downtown Seattle and up to 10 minutes away has only increased an average of 12.2%.

A Zillow economic data analyst Nicole Bachaud said homebuyers are placing less emphasis on short commutes, given the rise in remote working during the pandemic.

“Americans are looking for a combination of affordability and more space, be it an outdoor space or an extra bedroom that can be converted into a home office,” Bachaud said in a press release about the study. “In expensive, densely populated markets, this usually means a home away from downtown, which is tastier if you don’t have to commute every day, if at all.”

This graph shows how the value of homes outside of downtown Seattle has grown faster than homes in downtown Seattle since 2019.

Zillow

The study found similar trends in other major US subways, including New York City, San Francisco, Boston, Chicago, and Dallas. For example, a home a 10-minute drive to work in New York City is, on average, $ 73,673 cheaper than it was in 2019, according to the study. A house in Boston on the same commute is $ 21,175 cheaper.

However, the study suggests that the opposite is happening on some major subways. In places like Cleveland, Detroit, Baltimore, and Indianapolis, residential values ​​near downtown are rising. A home within a 10-minute drive of downtown Detroit is now $ 101,228 more expensive than in 2019, and the price of living within a 10-minute drive of downtown Indianapolis has increased by $ 54,025 over the same period According to the study.

“While these two forces seem to be opposing forces, they are actually two sides of the same coin: Americans are looking for bigger, more affordable homes as flexible work opportunities place new expectations on what they want and need in a home,” said the Zillow Report called. “Since people are looking for affordability, they are willing to live longer commutes if they can save on housing costs. And cheaper downtown cores are becoming more and more popular compared to the more expensive suburbs nearby. “