The 90’s were a magical time. Incredibly strong economy. Growing and exciting employment.
Overnight wealth. The American Dream realized…
Then the “dot-com” crash coupled with 9/11 caused a major local and global economy event. Today we are experiencing the longest recovery in American history. We look back at how our current local environment compares to that of 20 years ago:
Key Takeaways
Income vs. Cost of Living
What we know: Median Income increased 11% in 20 years. The median cost of a home increased 64% (This is not a typo).
What We Think: We have reached an inflection point where the “median” person can no longer work in Seattle and afford to purchase a home in city limits. The Light Rail will help. It will take time. Will it reach suburban markets in time to alleviate concerns of operating business in Seattle?
Vacancy/Rental Rates
What we know: Seattle’s vacancy rate was far lower during the dot-com era. If you take into account inflation, Seattle was more expensive as well.
What We Think: Seattle has yet to reach its pricing peak. As vacancy continues to tighten, the city will become even more expensive.
Dot-com Fundamentals vs. Today
What we know: The dot-com bubble burst due to easy capital, market overconfidence and pure speculation
What We Think: Today’s current demand and employee base is dominated by Fortune 100 companies. Today’s VC backed companies have far stronger fundamentals and oversite than their counterparts in the 90’s.
Please Reach out if there’s interest in discussing how the impacts of the next 2-3 years will impact your business. We are confident there is runway left in this recovery and companies should be planning accordingly.
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