The middle class can't compete with cash-buying investment companies for single family housing.

Almost 20 years ago, my family got our first house in Bellevue. We stretched to make it work on a middle class income, but were able to do it. As salaries rose, and interest rates were refinanced down, it wasn't as tight as those first couple of years and was quite comfortable for the last 10 or so. Last year, we decided to sell, having completely remodeled a few years earlier. The family needs changed. However, after paying everything off (including the approximately 10% of the sales price that goes to commissions and the costs associated with sales of a house), the return wasn't enough that we could have bought the same house, had that been what was looking for. As with many houses, there we're many offers. Several of which were cash with no contingencies.

Now as a single income, middle class buyer, with no debt - there's nothing affordable, even with a very nice down payment. The prices of housing has risen so rapidly, that the middle class buyer, looking to actually buy a house to live in, has no chance against the cash buyers who leave the homes empty as the values have been much stronger than the need to have a renter to offset the costs of leaving it empty. Now that, due to rising rates, the middle class is no longer able to compete at all, the cash buyers are going away and the empty houses are being put up for rent.

But even as the housing inventory is up, the sellers are still listing at high prices. The market is starting to level off as there aren't buyers anymore, and the prices are leveling off. However, they are not reasonable for the middle class buyer in search of a SFH. The cash-buying investment companies have pushed out the middle class buyer. In some cases, the few affordable houses in older neighborhoods are being bought by developers. They're tearing down 1200-1600sf houses in 60 year old neighborhoods and replacing them with 3500sf+ houses that have no identity in the neighborhoods where they've been built.

Bellevue is pushing out the middle class who values much of what Bellevue has to offer, but can't afford the price of admission.