Washington Housing Inventory Surges 64% as High Earners Exit State

Median home prices in Washington have softened 0.6% to 1.5% year-over-year. This decline is driven by a 64% inventory surplus over long-term March averages, with active listings reaching 17,590. The surge in supply is partially a result of affluent homeowners listing properties to avoid a new income tax passed in March 2026. On March 12, the day after the tax passed, 53 luxury homes priced at $2 million or more entered the market, compared to 32 on the same date a year earlier.

Demand has collapsed alongside the supply surge. Over 20,000 tech layoffs in the region during the first half of 2026—including cuts at Amazon, Microsoft, Meta, and Oracle—have reduced the pool of qualified buyers. This has led to an 11% year-over-year plunge in sales. Washington now leads the nation in housing oversupply, surpassing Colorado at 63% and Tennessee at 58%.