Seattle’s housing market has weakened, with the typical home value reportedly falling 9% to about $891,500 in the year to July. The decline is being linked to tech-sector layoffs, cautious buyers, high living costs, public-safety concerns and uncertainty over a proposed tax on households earning more than $1 million.

The 9.9% tax, due to begin in January 2028, would fund education, healthcare and other public services, while critics argue it could encourage wealthy residents and companies to leave. Luxury listings reportedly rose 65% after the tax was announced, inventory is near a 15-year high, and individual properties have seen reductions including $40,000 and $250,000; analysts also say reduced tech hiring and concerns about job security are weakening demand.