Seattle and the surrounding regions are experiencing a significant drop in housing prices, influenced by Starbucks’ decision to relocate from Washington state.
According to recent statistics from the Northwest Multiple Listing Service, King and Snohomish Counties have witnessed a substantial increase in home vacancies, leading to a reduction in property values by as much as $48,000 between April 2025 and April 2026.
This development coincides with Washington state’s legislative plans to implement a 9.9 percent tax on households earning over $1 million, set to take effect in 2029.
Jeff Costello, a real estate broker with Tribeca NW Real Estate, explained to the Daily Mail that this has dealt a severe impact on the tech hub, resulting in a statewide increase in vacant properties.
“We already have a relatively high sales tax, but now the legislature and the governor are pushing for an income tax,” Costello remarked.
“They’ve introduced what they’re calling a millionaire’s tax, which has certainly shaken up the market. For instance, Starbucks has moved out of Seattle,” he added.
The coffee conglomerate is headed for Nashville and Costello said many people are following suit, leaving the seller market to plummet.
‘They’re going back to where they’re from, or they’re trying to find somewhere more affordable,’ Costello said. ‘I’ve heard Tennessee a lot.’
Homeowners in Seattle and the surrounding areas are selling their properties and moving east
The mass exodus has left the seller market to plummet, leaving homes sitting on the market for weeks. This estate has five bedrooms and five bathrooms and is currently for sale for $5.9 million
Broker Jeff Costello from Tribeca NW Real Estate told the Daily Mail many Washington residents are following Starbucks’ lead and leaving
According to the data from the Northwest Multiple Listing Service, King County’s active inventory increased nearly 30 percent over the last year, rising from 4,472 to 5,863.
The area’s median home price plummeted from $907,000 to $859,000.
Zillow reported that most homes in King County stay on the market for an average of nine days before they sell.
Only 28 percent of sales were over listing price, with almost 50 percent selling below asking.
Just over 60 miles away in Snohomish County, the median home price dropped from $755,500 to $750,000 in a year. Inventory, however, increased by a drastic 58 percent from 1,325 to 2,094.
According to Redfin, homes tend to sell after two weeks on the market, which is an increase from last year. Recent listings sold for at or below the asking price.
Costello told the Daily Mail that divisive politics were an ‘underlying factor’ in the driving force back east.
Woke democrat Seattle Mayor Katie Wilson has ignited controversy after taking office earlier this year.
Costello said a new millionaire’s tax is prompting the wealthy to list their Washington homes. Pictured is a $5.9 million home in Carnation, Washington
Costello said renovations and amenities are the keys to selling a home. This $5.9 million Carnation estate includes 27 acres of land and an eight stall barn
Typically, spring and summer mean more housing sales, but the Washington market took a turn last year. The Cape Cod style home has living room, den and dining areas
She dismissed concerns that wealthy residents and employers could leave Washington over taxes, bluntly saying: ‘The ones that leave, like, bye.’
After her election, she decreed that she would not be buying from one of the city’s biggest businesses.
‘I am not buying Starbucks, and you should not either,’ she said at a union rally for baristas.
However, after the company announced its relocation plans, Wilson softened her anti-business stance.
‘Those comments were not productive in the sense that they caused more harm than good,’ she told the New York Times.
Wilson sparked further controversy regarding open air drug use in public by the city’s large homeless population.
The Daily Mail was in the Emerald City in January as Seattle drug addicts praised Wilson for allegedly telling cops not to arrest people doing illegal substances on the crime-ridden city’s streets.
Costello said he believes the changing politics is forcing some to pack up. ‘I don’t think that they want to acknowledge that that is a reason why people are leaving, but it’s a topic of conversation with a lot of people.
Seattle Mayor Katie Wilson took office this year and scoffed at the idea that high taxes would drive people out
A homeless camp in the heart of Seattle. In January woke mayor Wilson allegedly told cops not to arrest people doing illegal substances on the crime-ridden city’s streets
Costello said many people don’t ‘want to acknowledge’ that politics play a role in their departure from the state. Pictured is a $2.2 million listing in Seattle
‘I don’t think a lot of people want to talk about it just because Washington state and specifically King County is somewhat liberal in that sense.’
According to the Seattle Times, buyers jumped at the chance to purchase a home during the pandemic when mortgage rates were at an all-time low.
Costello said things began to take a turn last summer as people began selling off their pandemic homes.
Many assumed the market would recover from the influx of inventory quickly, but as circumstances began to change, the seller market only worsened.
‘At the beginning of this year, it was really kind of like, hey, this isn’t getting better. And then I think the things that are happening in the Middle East, the world affairs are not helping matters because interest rates are still teetering,’ Costello said.
‘I think everybody kind of went into 2026 thinking the housing market would open up and buyers that have been sitting on the sidelines will come out.’
The conflict in Iran has pushed mortgage rates higher, soaring gas prices are squeezing household budgets and concerns over another round of tech layoffs continue to loom over workers employed by Seattle-area giants.
‘We’re a big tech area,’ Costello said. ‘With Microsoft, Amazon and then all the other companies moving in, I think AI has kind of caused some uncertainty…
Conflict in the Middle East and rising fuel prices are contributing to inflated mortgage rates. This home has four bedrooms, three bathrooms and scenic views and is on the market for $2.2 million
An important key to selling a home in a tough market is avoiding overpricing. This ranch-style estate sprawls across 3,050 square feet
Costello believes that the market will turn as people continue to move to the area. This home offers panoramic views of Puget Sound
‘That seems to be their big hot button is like, “I don’t know if I will have a job in two years.”‘
Costello explained that in today’s market, buyers have the ‘leverage’ and sellers must price their homes based on what can be perceived as ‘good value.’
‘When people perceive good value, they’ll move on it,’ he said. ‘And then when there are other people that are interested, then the commotion creates emotion and that’s what happens when people start making offers.
‘Unfortunately, you have some very ambitious sellers that they want to price their house above market value and see how the market works,’ he added. ‘And then the house doesn’t sell.’
However Costello said that although many people have packed their bags, tech professionals are still moving to the area for new jobs and residents are moving within the region.
‘There’s still a lot of good work here, good-paying jobs here, even though people are concerned about losing their jobs,’ he said.
The hope is, Costello said, that as more and more people take advantage of the massive inventory, the tides will slowly begin to shift.
‘Now [buyers] are just, they’re going to take their time because they can, he said. ‘It’s not going anywhere.’
Starbucks is laying off another 300 US corporate employees and shutting some regional support offices in the latest round of cuts under CEO Brian Niccol
The coffee giant said the job losses are part of its turnaround plan as it tries to cut costs, simplify the business and return to stronger profits
Starbucks is cutting 252 US corporate employees between the coffee giant’s Seattle headquarters and remote positions.
The latest layoffs under CEO Brian Niccol will begin July 17, 2026, and continue through February 2027, according to a state regulatory filing Monday.
The cuts mainly affect support center staff at the downtown Seattle headquarters.
Senior corporate roles are not safe. Financial analysts, legal specialists, and even nine vice presidents are being nixed, Seattle Times reported.
The coffee giant will keep support offices in Seattle and New York, along with its new Nashville hub, where it recently leased most of a shiny six-story office building.
