The tech effect is alive and well in the Pacific Northwest, according to Zillow’s August market report.
Home values and rent rates in Portland and Seattle, two regions with booming technology industries, continue to grow at an accelerating rate.
Portland’s home prices are increasing at the fastest rate of any of the 35 largest U.S. metros. Annual home value growth in the Rose City climbed from a 13.2 percent pace in January to 14.8 percent last month. In Seattle, the third-fastest growing region, home values rose at an 11.3 percent annual rate in August.
Renters in those cities are also feeling the affordability squeeze. Seattle experienced the fastest annual rent growth in the country last month, with rates up 9.7 percent. Portland was close behind with an annual rent increase of 7.4 percent.
Surprisingly, home values in the Northwest’s tech hubs are growing considerably faster than the Bay Area. Annual growth in Silicon Valley actually cooled in August. The growth rate in San Fransisco decreased from 11.7 percent in January to 6 percent in August. In San Jose, annual home value appreciation went from 11.1 percent, at the beginning of the year, to 5.8 percent last month.
Could cooling in the Bay Area as Seattle and Portland markets heat up be a sign of techies eyeing more affordable hubs to the north?