Quick -- what's the capital city of Washington State? Hint: It's not Seattle.

It isn't? That may be surprising to Americans who have joined the growing national love affair with Seattle. While it's the first city that pops into our minds when we hear the word "Washington," Seattle is not, in fact, the state's capital. It's Olympia. A city endowed with equal amounts of natural beauty and, for better or worse, not as much press. Olympia is located within Thurston County, a locale blessed with more than 100 lakes, and situated on the southernmost point of Puget Sound.

This abundance of water has defined Olympia, from its lush surroundings to its beautiful waterfront properties to its water sport-loving residents. The city exudes an adventurous spirit, indicated by the legions of locals who have taken a liking to such pasttimes as waterskiing, kayaking, canoeing, jetskiing and windsurfing. Even those who aren't quite as daring find it hard to resist the water; you'll find just as many folks sailing, fishing or just relaxing on the shores watching their more adventurous counterparts go by.

But Olympia is about much more than just beautiful waterways. It's about towering mountains, forests, a diverse array of cultural offerings, plenty of shopping and a large inventory of surprisingly affordable housing. Native Washingtonians and transplants have taken note. Greater Thurston County has experienced a large influx of new residents. Some 200,000 people now live within Thurston County, and according to Census figures, more than 39,000 people have migrated to Thurston County from surrounding counties, representing an increase of more than 24 percent.

That's great news for the job market and for the real estate market. But it's a challenge to the already strained transportation situation facing Olympia and its environs. Seattle is notorious for its congestion, and the problem seems to have spilled over to Olympia as the word gets out about the overwhelming advantages of living in this scenic city. City planners are working hard to make the traffic problem more manageable; construction crews are building new ramps and major arteries at a feverish pace. The citizens of Olympia have approved an innovative six-year transportation plan which proposes the constructino of bike lanes alongside the city's major arteries. And Olympia also is beefing up its public transportation system in hopes that its residents will turn to alternative forms of transportation to both relieve congestion and reduce air pollution, another negative side effect of the city's growth.

Like Seattle itself, Olympia's residential real estate market is doing quite well. Local Realtors have benefited from a recent surge of first-time homebuyers -- a phenomenon spurred by low unemployment, a strong and diverse local economy and low interest rates. And first-time buyers are finding a sizeable inventory from which to choose, because many existing homeowners are deciding to join the ranks of move-up buyers. Amidst this high inventory and healthy economy, Olympia is the place to be for Realtors and aspiring homeowners alike.

Within greater Thurston County, the average price for existing single-family homes jumped from $133,000 in 1996 to $141,000 in 1998. For new homes, the average price increased from $143,000 in 1996 to $159,000. The county's rental market, too, is heating up, with a vacancy rate somewhere between 6 percent and 8 percent. Thurston County experienced a building surge in the early '90s, and while aspiring homebuyers are still closing on homes by the hundreds -- and the housing market is hot by nearly any city's standards -- Olympia's local market reportedly still ranks behind white-hot Seattle's.

The building boom has caused multifamily housing developers to compete for prospective tenants in order to decrease the vacancy rate. As a result, rents are quite reasonable, particularly by Puget Sound standards. One-bedroom apartments start at approximately $450 per month, and two-bedrooms at $500. Many two- and three-bedroom duplexes are available at rents ranging anywhere from the upper $500s to $800 per month and above.

Heading into the next century, Olympia is striving to find the balance between accommodating its growing populace and staving off the problems so often associated with urban growth. And this challenge isn't likely to disappear anytime soon; Olympia's affordable housing, diverse job market, vital economy and stunning surroudings are keeping the residential real estate market on steady boil.

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Published: November 22, 1999

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