Seattle’s luxury homes are struggling to sell as the city’s tech industry faces significant job cuts and tax increases. A house in the affluent suburb of Sammamish, listed for $2.9 million, has been on the market for over 100 days, with the seller offering to help with financing.
Nearby, two homes across the street from each other are listed for sale, with one initially priced at $2.2 million and now reduced to $2.1 million.
This is a rare sight in the Seattle area, which has long been attractive to affluent workers due to its plentiful jobs, scenic views, and lower cost of living compared to San Francisco.
Companies like Microsoft, Amazon, and Meta Platforms have slashed thousands of jobs in the region as artificial intelligence transforms the tech industry.
This has led to a decrease in pending home sales, with the top 5% of the market experiencing a drop in pending sales over the past year.
Jeff Tucker, principal economist for Windermere Real Estate, notes that homes priced over $2 million in the six most expensive Seattle suburbs spent an average of 44 days on the market in the first half of the year.
This is significantly longer than the 25 days in the first six months of 2025 and just nine days in 2022.
Washington state has introduced a 9.9% income tax for households earning over $1 million annually, which is expected to impact the state’s wealthiest residents.
Daryl Fairweather, chief economist at Redfin, says the tax code changes could affect Seattle’s draw as a trade alternative to San Francisco.
Some financial planners are advising their wealthy clients to avoid dying in Washington due to the state’s high estate-tax rate, which is currently tied with Hawaii for the highest rate in the country.
This could lead to a decrease in the number of wealthy individuals living in the state, further impacting the luxury housing market.
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The situation is complex, and the combination of job cuts and tax increases could lead to a shift in the type of businesses and individuals that are attracted to the Seattle area.
While the region still has a strong foundation in tech, the changes could lead to a more diversified economy, with potential growth in areas like aerospace, life science, and gaming.
As the market continues to evolve, it’s likely that there will be a decrease in the number of luxury homes being sold, at least in the short term.
For buyers who have been waiting for the right opportunity, this could be a chance to purchase a high-end property at a lower price point.
Eleanor Payne has seen the shifts in the local economy up close, with her husband recently accepting a voluntary retirement program from Microsoft.
She notes that the area’s talent and infrastructure supporting large tech companies means Seattle will always be a draw, but the combined uncertainty in employment and local politics is shrinking the pool of buyers.
Near Las Vegas, about 24 of the 171 units at the Four Seasons Private Residences opening next year sold to people from Washington, according to Craig Eddins, the project’s executive director.
He said one common thread is buyers seeking to leave the state before a major capital event, such as retiring or selling a company, that could trigger Washington’s capital gains tax.
As the situation in Seattle continues to unfold, it’s clear that the city’s luxury housing market will be impacted by the tech industry’s job cuts and the state’s tax increases.
While there are still opportunities for buyers and sellers, the market is likely to remain uncertain for the foreseeable future, with some buyers looking to shares as an alternative investment.