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Seattle has traditionally been the higher-priced real estate market in Washington State, but there are plenty of other areas in the state that offer more affordable housing, and Olympia is one of them.
Home prices in the Seattle metro area have risen sharply over the last few years, creating affordability issues for some buyers.
But other housing markets in the state are much more affordable by comparison. And today, we’ll look at Olympia, Washington, the state capital.
Let’s start by putting “affordable” into context. Here’s a look at the median home prices for Olympia, Seattle, and the nation as a whole, as of March 2026:
Note: These figures were obtained by Zillow in March 2026.
From this comparison, we can see that Olympia is a more affordable housing market when compared to Seattle. The median home price in Olympia is higher than the national median, but it’s miles below Seattle. So it’s a more budget-friendly option for home buyers who want to get more for their housing dollar.
The median house value in Olympia remained unchanged YOY, as per Zillow.
Right now, the real estate market in Olympia is very hot. Prices have increased rapidly over the past year and are expected to continue rising at a healthy pace over the next 12 months.
Related: Camas real estate market
While home prices in Olympia are in the affordable ranges for many buyers, don’t let that fool you. The local real estate scene is still highly competitive, with buyers competing for scarce inventory. That’s the situation as of early 2026, and those conditions are expected to persist for the foreseeable future.
Economists say that a “healthy” and balanced real estate market has somewhere around four to six months of inventory. As of March 2026, Olympia, Washington had a 2.3-month supply of homes for sale. The national average for the same timeframe was just over three months’ worth of supply, and even that is slightly below normal.
| Fact: Olympia is the capital of Washington State and home to around 51,000 people. It’s located roughly 60 miles southwest of Seattle, at the southernmost point of Puget Sound. The State of Washington is the largest employer in the area. The indigenous Coast Salish people used to refer to it as the “place of the bear” in their native language. |
Homes are not spending very much time on the market before finding an interested buyer and being sold. This is indicative of a fast-moving real estate market where properties get scooped up quickly.
Related: Seattle Housing Market Forecast: Seven Predictions for 2026
The take-home message is that home buyers in Olympia should start their searches early and be prepared for competition. With steady demand and scant inventory, the housing market in Olympia could create challenges for some buyers.
But with a relatively affordable price tag, compared to the state’s other major population centers, it’s still an attractive market for budget-conscious buyers.
One of the main reasons Olympia continues to attract buyers is migration from higher-priced markets like Seattle, Bellevue, and Tacoma.
Remote and hybrid work arrangements have allowed many professionals to prioritize affordability and lifestyle over proximity to downtown office hubs. For buyers who only commute a few times per week—or work remotely full-time—Olympia offers significant cost savings without leaving the Puget Sound region.
In practical terms, a buyer with a $700,000 budget in Seattle might face stiff competition for a smaller home or condo. In Olympia, that same budget can often secure a larger single-family home, potentially with more land, newer construction, or desirable neighborhood amenities. This “value gap” continues to drive interest from move-up buyers and relocating households.
Olympia offers a diverse mix of housing options, from historic homes near downtown to newer subdivisions on the outskirts of the city.
Areas like South Capitol feature charming older homes with established tree-lined streets, while neighborhoods in West Olympia and Lacey (just adjacent to Olympia) offer newer construction at competitive price points.
Buyers will also find a range of property types, including single-family homes, townhouses, and condominiums. While single-family homes dominate the market, attached housing can provide an entry point for first-time buyers seeking affordability. This variety gives Olympia an advantage for households at different life stages and budget levels.
Unlike some markets that rely heavily on one private-sector industry, Olympia benefits from the stabilizing presence of state government employment.
As the capital of Washington, the city has a consistent base of public-sector jobs, which tends to cushion the local economy during broader downturns.
This employment stability helps support ongoing housing demand. Even when interest rates rise or national market conditions soften, government payrolls and related industries can provide a steady stream of qualified home buyers. For prospective purchasers, this economic foundation may contribute to long-term property value resilience.
Pro Tip: Assess various hom eloan options before deciding which one to apply for, including fixed-rate mortgages, adjustable-rate mortgages (ARMs), and jumbo loans.
While Olympia is more affordable than Seattle, it is not immune to broader affordability pressures.
Mortgage rates, property taxes, insurance premiums, and maintenance costs all factor into total housing expenses. Buyers should evaluate monthly payments carefully rather than focusing solely on purchase price.
Additionally, limited inventory means that competitive bidding situations can still occur, particularly for well-priced homes in desirable neighborhoods. Buyers may need strong pre-approvals, flexible timelines, and realistic expectations when entering the market.
Pro Tip: Check out our 2026 Conforming Loan Limits and FHA Loan Limits pages to help you understand how much you can borrow with a specific mortgage program.
Looking forward, several factors could influence Olympia’s housing market trajectory.
Mortgage rate movements will remain a primary driver of affordability and buyer activity. Continued population growth in Western Washington could sustain demand, especially if Seattle-area prices remain elevated.
New construction activity will also be important. If builders increase supply in the Olympia and Thurston County area, inventory levels could gradually improve, easing some competitive pressure. However, land constraints, permitting timelines, and construction costs may limit how quickly supply expands.
For buyers evaluating Olympia, the key takeaway is balance. The city offers meaningful price advantages compared to Seattle, supported by economic stability and strong regional appeal. But competition and supply constraints mean preparation and strategy remain essential for success in this evolving housing market.
Sammamish Mortgage is a local mortgage company serving the broader Pacific Northwest region, including Washington State, Idaho, Colorado, California, and Oregon. We are proud to offer a wide variety of mortgage programs and products in Olympia, WA, with flexible qualification criteria, including our Diamond Homebuyer Program, Cash Buyer Program, and Bridge Loans. Please contact us if you have any questions or are ready to get pre-approved for a mortgage, or visit our website to get an instant rate quote.
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