Washington State Surprisingly Affordable?

What? Washington is the 4th most expensive state for housing in the country! How on earth can we be considered "affordable?" According to a detailed report in USA Today, Washington is the 5th most affordable state in the USA. There is a large caveat to that declaration, "Median Income." The USA Today study was based on median income. Washington has one of the highest median incomes in the USA at $91,360, in fact just $200 ANNUALLY less than California. The not so Golden State ranked 49th on the list. Why was California ranked so poorly, well because EVERYTHING in that state is more expensive.

Washington scored well because it was based on discretionary income after the basic expenses of housing, food, utilities, taxes, healthcare, and gasoline. Take a look at the report here. Our rival and neighbor Oregon ranked poorly at number 46 due largely to its much lower median income and its brutal median income tax which was ranked dead last as the highest in the land.

So the caveat is that on this site we look at retirees which most often are not making the same levels of income they made while working. If we eliminate median income as a driver, the US News & World Report study dated 2022 had Washington at number 45 slightly worse than Oregon but better than California which ranked in at 49th on that list too. Washington was ranked as the #2 best state to live in that year, behind only Utah and well ahead of Oregon at 23 and California at 33. So what it lacked in affordability it made up for in other areas.

Here is a top and bottom chart from the USA Today study.

Vancouver Health Care in Abundance

Vancouver WA offers expansive network of health care options. Retirees looking to be close to health care facilities will be pleased. Vancouver has two major hospitals: Peacehealth SW Washington Medical Center is the largest hospital in SW Washington with 450 beds and a massive campus filled with a variety of special treatment centers. Legacy Salmon Creek is located at the merger of I-5 and I-205 and offers a wide array of services. Legacy systems is negotiating with OHSU to form a new expanded health are alliance. 

Each of these two hospitals have a large "cottage industry" of medical support offices nearby. Kaiser Permanente does not have a hospital in Vancouver but does have a wide range of medical offices conveniently located around the city. There has been talk in recent years of Kaiser building a hospital in the Vancouver area to support their growing numbers in the region. 

The Vancouver Clinic is a large regional network of clinics all across the city, Clark County and now even Multnomah county offering a wide range of medical services and accepting most insurance.

The Veterans Administration operates a campus at Fort Vancouver which includes a small hospital and most VA services locally. There is a major VA hospital nearby in Portland. 

The Vancouver area offers retirees a wide variety of health care options that combined with Washington's favorable taxation for retirees makes the area highly desirable.

Is Washington Losing its Retiree Advantage?

Over the last few years Washington State has been trying to push sweeping tax changes through the legislature including an attempt at creating a capital gains tax at the local state level. That is currently being challenged in court. Washington State remains free of an income tax and that is a substantial draw to the state for retirees. 

Washington continues to be one of the most expensive real estate markets in the US and that can act as a deterrent for retirees moving here from other areas. However Washington has a very strong and growing economy and that is creating good paying jobs that tend to lure families to the state. Many retirees want to stay close to their families, particularly grand children. This continues to form an anchor for many retirees as younger people are flocking to the state in great numbers.

Washington's moderate center left politics were always a draw for both liberals and somewhat conservative people but during the last few years the state government has made a strong California-like move to the left. For some this may be a good thing and could be a draw, but for others it is a negative. 

States with moderate politics tend to be the most desirable because they welcome a variety of viewpoints and tend not to chase away people. California chases away people as does states opposite California like Mississippi. Washington has enjoyed political moderation for decades. but as I mentioned above, the state now seems to be following California. This despite the horrific problems we see happening in that state these days.

So I believe the merits of Washington State still outweigh the negatives, but trends are moving towards a less desirable stopping point for retirees. This will be a disadvantage to states that have lots of retirees such as Arizona and Florida. In those two states the voting population is older and tend to have legislatures more in tune with the needs of the senior population.

Washington State is one of the few states that is getting younger. Currently we rank 43rd of 51 (DC is included) for residents over the age of 65. A decade ago we were ranked in the middle of the pack. The current median age is 38. That compares to the "oldest" state, Maine with a median age of 45 and the "youngest" state, Utah with a median age of 31. States with the most people over age 65 are Maine with 21.8% followed by Florida with 21.3%. West of the Rockies, the leader is Hawaii with 19.6%. Wow Oregon is ahead of Arizona by a smidgen with 18.6%! 

So that's the trend and things can and do change. I am guessing that Oregon has received a great many retirees from neighboring California because Oregon is definitely not as retiree friendly as Washington State. That's another post.