Redmond real estate is defined by one employer above all others: Microsoft, which operates its global headquarters campus here and employs tens of thousands of workers. Median home prices sit near $1.1 million, with single-family homes in Éducation Hill, Grass Lawn, and Redmond Ridge ranging from $900,000 to $1.8 million. Lake Sammamish waterfront properties exceed $3 million, with private dock lots rarely turning over. The Lake Washington School District serves most of Redmond and ranks among the top five in Washington, creating a meaningful premium for homes within district boundaries.
Microsoft demand and Eastside investment outlook
Redmond's housing demand is tightly tied to Microsoft hiring cycles, stock performance, and the ebb and flow of H-1B visa tech employment. When Microsoft scales headcount, demand surges — price-per-square-foot in Redmond averages $450–$600 for standard detached homes, reaching $650+ in top neighborhoods. Cap rates are highly compressed at 3–4.5%, reflecting an appreciation-focused market where cash flow plays a secondary rôle to long-term equity. King County property taxes at approximately 1.0% of assessed value produce significant annual bills on $1M+ homes — a cost buyers absorb for the appreciation track record.
Overlake and the Willows neighborhoods closer to the Microsoft campus and the East Link light rail station (now operational) offer condos from $550,000 to $800,000, attracting international tech workers who prefer minimal commute time over suburban space. New construction in Redmond Ridge and Trilogy communities on the eastern edge offers single-family homes from $950,000 to $1.5 million with HOA amenities and fees of $200–$500/month. Buyers treating Redmond as a long-term hold have seen appreciation average 7–10% annually, consistent with the broader Eastside premium market.
