In recent decades, Seattle has undergone a dramatic transformation that would be unrecognizable to someone from 1980. The city’s population has surged from approximately 493,846 in 1980 to an estimated 755,078 by 2023, marking an astounding growth rate of 52.9%. Historically rooted in aerospace and defense during the Cold War, Seattle’s growth trajectory was supercharged by the PC revolution, the dot-com boom, and the advances of Web 2.0. Rather than experiencing a downturn after the Cold War, Seattle’s economy rebounded and accelerated, empowering significant demographic shifts and urban development.
This population growth has coincided with a notable economic transformation, leading to increased wealth across the area. Rising household incomes, soaring home values, and visible income inequality reflect this economic boom. Recent analyses have focused on identifying the city’s most expensive ZIP codes using current data from Zillow’s Home Value Index. This investigation reveals insights about the real estate market in Seattle, highlighting how the values of homes have appreciated significantly over recent years. The data is especially pertinent as it evaluates the median home values from September 2024 as well as the averages from the preceding year.
The analysis identified several ZIP codes marked by particularly high property values. The most expensive among them is ZIP code 98112, which encompasses affluent neighborhoods such as Stevens, Washington Park, Montlake, and Foster Island. In September 2019, the median home value in this area was approximately $1.1 million, and it has increased by 23.9% to nearly $1.363 million by September 2024, evidencing the resilience of this market. Notably, 98112 boasts high income levels, with a median household income of $153,204 and a mean income of $256,059, positioning it as a desirable neighborhood for affluent residents.
Following closely is ZIP code 98199, located in the far western part of the city. This area includes sought-after neighborhoods such as Lawton Park and Magnolia. Its median home value has soared just under $1.2 million, representing a substantial appreciation of 31.2% from 2019 to 2024. The household income statistics for this ZIP code are also impressive, with a median income of $168,132 and mean incomes reaching $205,611. An extraordinary two-fifths of households within this area report earning $200,000 or more annually, highlighting its status as an affluent community.
The third most expensive ZIP code in Seattle is 98105, which covers the University of Washington campus and surrounding neighborhoods. This area features some of the costliest properties, particularly those near Lake Washington. The median home value in 98105 is approximately $1.145 million, reflecting a 22.9% increase from $931,791 in September 2019. Despite a lower median household income of $75,214, there is a significant disparity in income distribution, with a mean household income of $155,790. Notably, over a quarter of households earn $200,000 or more, while a significant portion struggles with incomes below $50,000, illustrating the duality of wealth in this area.
ZIP code 98115 ranks as the fourth most expensive in Seattle, close to the top-tier areas. It encompasses popular neighborhoods such as Roosevelt and Maple Leaf, along with access to desirable lakefront properties. This ZIP code has witnessed home values rise impressively by 30.3%, from a median of $792,013 in September 2019 to $1.132 million by September 2024, reflecting consumer demand and market dynamics. The neighborhood’s appeal is enhanced by its diverse community and recreational opportunities, further solidifying its position in the competitive Seattle housing market.
Lastly, ZIP code 98119 is the fifth priciest in Seattle, extending from the Lake Washington Ship Canal to Elliott Bay. The neighborhoods, including West Queen Anne and Interbay, have seen home values surge to a median of $1.029 million as of September 2024, demonstrating significant growth from prices below the million-dollar mark just five years prior. The median household income stands at $112,865, while the average household income is higher at $170,519, indicative of the area’s desirability. The trends observed in these expensive ZIP codes underscore the broader dynamics of Seattle’s evolving real estate landscape, driven by population growth, economic opportunity, and a high standard of living.