For the second straight month, Seattle home prices grew faster than any other major metro region in the country.
That’s according to data from the S&P CoreLogic Case-Shiller National Index, a leading indicator of home price gains. According to the October report, Seattle experienced a 10.7 percent year-over-year price increase, followed by Portland at 10.3 percent and Denver at 8.4 percent.
Seattle home prices grew 11 percent in September, earning the region the title of the nation’s hottest housing market for the first time in years.
Seattle’s growth, nearly double the national increase, is driven largely by the booming technology industry. The region’s tech giants like Amazon and Microsoft have been aggressively hiring in recent years, drawing large numbers of high-paid tech workers who can afford more expensive homes.
There are also now more than 80 engineering centers in the Seattle area operated by big tech corporations, like Facebook, Alibaba, eBay and others. These companies have set up shop in the Northwest to mine the region’s pool of tech talent. This kind of employment growth is a key factor in driving up home prices.
“Cities that have stable or better yet growing employment tend to do well and, for most of this year, the Pacific Northwest region is consistently very popular,” said David Blitzer, Managing Director and Chairman of the Index Committee. “One month Seattle is ahead of Portland and the next month it reverses.”