News Update : Despite cooling inflation, many costs rising for Seattle residents

Victor K • December 22, 2023
A woman is holding a scooter and looking at her phone.

Inflation has not only hit the construction market in Seattle but all other factions as well. The residents of Emerald City look down the barrel of price hikes in all walks of life. Experts at United Seattle look at all the commodities hit by inflation and interest rates includes food staples and real estate.

 

Cost Of Living

The cost of living index or COLI is used to compare one city with another to gauge the living expense as per a standard benchmark. Out of the 57 items researched, 37 were seen to be more expensive as compared to last year whereas 19 items experienced a decrease and three remained at the same cost.

 

Exponential Inflation

Despite a national inflation rate drop to 3.7% in September from its peak of 9.1% in June 2022, inflation remains above the Federal Reserve's target rate of 2%. The data suggests that while the broader economic indicators are improving, the impact on daily expenses in Seattle is more complex.

A roll of money next to a stack of coins and abacus in the background.

Variable Changes

Out of the 37 items that saw a price increase, 19 of them had an increase of equal or more than 10%. This indicates that the price increase is just not an increase but a shift in living standards as monthly incomes have not increased in parity with the inflation in Seattle. Notably, Seattle retained its status as having the most expensive gasoline among 269 surveyed cities, even surpassing California cities.


Personal Cost Goes Through The Roof

Seattle residents faced an unwelcome surprise in the realm of personal grooming, with the average cost of a men's barbershop haircut soaring to $52.50. This represents a significant increase of nearly $15 from the previous year, highlighting an unexpected expense for many. This might come across as an insignificant factor but every dollar adds up in the yearly expenses.

A group of people are walking down a city street with shopping bags.

Housing Expenses Are Rising

The housing sector, a substantial element of overall living costs, experienced an incline. The rental cost for a two-bedroom apartment saw a $112 rise, reaching $3,360. Simultaneously, the average price of a recently constructed home surged to around $1,014,000, marking an increase of almost $8,000. Furthermore, the interest rate for local fixed 30-year mortgages climbed to 7.47%, reflecting a growth of over 2 percentage points.

 

Overall Cost Ranking

A total of 269 cities were surveyed for this press release and Seattle ranks at number 9, indicating a significant cost of living in Seattle along with a hefty increase when compared to 2022. From another perspective, it is 46% more expensive to live in Settle as compared to the national average. NYC claimed the top spot with 128% above the national average.

 

As people in Seattle deal with the costs going up and down, the COLI helps us understand how inflation affects our daily lives. It shows us how things like getting haircuts or paying for a place to live are getting more expensive or sometimes getting cheaper. This tells us we need to be good at handling money because the economy is not always stable. As we get ready for the 2024 election, the high cost of living is a big worry. City dwellers need to look out for their financial health because a new recession may be around the corner.

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