The price of the average single family home in the Seattle area increased 13.5 percent in the past 12 months, more than twice the national average of 5.9 percent. Portland is in second place nationally, with an average 7.6 percent increase.
Fortune reports that in August, the median single family home in Seattle cost $730,000. Buyers in suburbs like Snohomish or Pierce County can find homes for $455,000 or $313,000, respectively, but will have to deal with a 1.5 hour commute one-way.
A shortage of land is preventing builders from creating new subdivisions in Seattle, aggravating the low inventory. Seattle home prices are now 20 percent higher than they were at the peak of the height of the housing bubble, and they are not expected to drop anytime soon.