Mercer Island, WA Real Estate Market

Source & Methodology

Analytics built by:   Location, Inc.

Raw data sources:   American Community Survey (U.S. Census Bureau), U.S. Department of Housing and Urban Development, Federal Housing Finance Agency.

Date(s) & Update Frequency:
  • Home Values, Rents: Reflects Q4 2020. Updated quarterly.
  • Setting, Housing Stock, Homeownership: 2019 (latest available). Updated annually.

Methodology:   NeighborhoodScout uses over 600 characteristics to build a neighborhood profile… Read more about Scout's Real Estate Data

Mercer Island, WA Housing Market Trends

With a population of 25,894, 10,199 total housing units (homes and apartments), and a median house value of $1,486,873, Mercer Island house prices are not only among the most expensive in Washington, Mercer Island real estate also is some of the most expensive in all of America.

Single-family detached homes are the single most common housing type in Mercer Island, accounting for 68.10% of the city's housing units. Other types of housing that are prevalent in Mercer Island include large apartment complexes or high rise apartments ( 29.92%), duplexes, homes converted to apartments or other small apartment buildings ( 1.05%).

Owner-occupied, three and four bedroom dwellings, primarily in single-family detached homes are the most prevalent type of housing you will see in Mercer Island. Owner-occupied housing accounts for 68.31% of Mercer Island's homes, and 53.08% have either three or four bedrooms, which is average sized relative to America.

At the end of World War II, American soldiers returned home triumphant and, with the help of the GI Bill, built homes by the millions on the edges of America's cities. These homes were predominantly capes and ranches, modest in size, but built to house a growing middle-class as the 20th century became the American century. Mercer Island's housing was primarily built during this period, from the '40s through the '60s. A full 41.01% of the city's housing hails from this era. Other housing ages represented in Mercer Island include homes built between 1970-1999 ( 37.54%) and housing constructed between 2000 and later ( 18.49%). There's also some housing in Mercer Island built before 1939 ( 2.95%).

Mercer Island Home Appreciation Rates

In the last 10 years, Mercer Island has experienced some of the highest home appreciation rates of any community in the nation. Mercer Island real estate appreciated 85.87% over the last ten years, which is an average annual home appreciation rate of 6.40%, putting Mercer Island in the top 10% nationally for real estate appreciation. If you are a home buyer or real estate investor, Mercer Island definitely has a track record of being one of the best long term real estate investments in America through the last ten years.

Appreciation rates are so strong in Mercer Island that despite a nationwide downturn in the housing market, Mercer Island real estate has continued to appreciate in value faster than most communities. Looking at just the latest twelve months, Mercer Island appreciation rates continue to be some of the highest in America, at 6.94%, which is higher than appreciation rates in 85.57% of the cities and towns in the nation. Based on the last twelve months, short-term real estate investors have found good fortune in Mercer Island. Mercer Island appreciation rates in the latest quarter were at 2.76%, which equates to an annual appreciation rate of 11.49%.

Relative to Washington, our data show that Mercer Island's latest annual appreciation rate is lower than 50% of the other cities and towns in Washington.

One very important thing to keep in mind is that these are average appreciation rates for the city. Individual neighborhoods within Mercer Island differ in their investment potential, sometimes by a great deal. Fortunately, you can use NeighborhoodScout to pinpoint the exact neighborhoods in Mercer Island - or in any city or town - that have the best track record of real estate appreciation, by the latest quarter, the last year, 2 years, 5 years, 10 years, or even since 2000, to assist you in making the best Mercer Island real estate investment or home purchase decisions.

Average Home Values

 

Median Home Value:
$1,486,873

Mercer Island, WA HOME PRICES

> $1,140,000
65.7%
65.7%
$855,001 - $1,140,000
19.7%
19.7%
$570,001 - $855,000
7.8%
7.8%
$456,001 - $570,000
2.1%
2.1%
$342,001 - $456,000
1.9%
1.9%
$228,001 - $342,000
1.6%
1.6%
$114,001 - $228,000
0.7%
0.7%
$57,001 - $114,000
0.0%
0.0%
$0 - $57,000
0.6%
0.6%
0.0% 100.0%
% OF HOMES
Value Relative To State

Very High for Nation

Very High for WA

Value Relative To Nation

Number Of Homes And Apartments:
10,199

Mercer Island Appreciation Rates

 
Time Period Total Appreciation Avg. Annual Rate Compared To
WA*
Compared To
America*
Latest Quarter:
2020 Q3 - 2020 Q4
Last 12 Months:
2019 Q4 - 2020 Q4
Last 2 Years:
2018 Q4 - 2020 Q4
Last 5 Years:
2015 Q4 - 2020 Q4
Last 10 Years:
2010 Q4 - 2020 Q4
Since 2000:
2000 Q1 - 2020 Q4
158.88% 4.63%
9
10
* 10 is highest

Rent & Ownership

 

Average Market Rent:
$3,493 / per month

Homeownership Rate

Owners
68.3%
68.3%
Renters
31.7%
31.7%
Vacant
7.3%
7.3%
0.0% 100.0%
% OF HOMES

Housing Market Details

 

Age of Homes

2000 or Newer
18.5%
18.5%
1970 - 1999
37.5%
37.5%
1940 - 1969
41.0%
41.0%
1939 or Older
3.0%
3.0%
0.0% 100.0%
% OF HOMES

Types of Homes

Single-Family
68.1%
68.1%
Townhomes
0.9%
0.9%
Small Apt. Buildings
1.0%
1.0%
Apt. Complexes
29.9%
29.9%
Mobile Homes
0.0%
0.0%
Other
0.0%
0.0%
0.0% 100.0%
% OF HOMES

Home Size

No Bedroom
3.3%
3.3%
1 Bedroom
11.3%
11.3%
2 Bedrooms
17.8%
17.8%
3 Bedrooms
22.3%
22.3%
4 Bedrooms
30.8%
30.8%
5 or more bedrooms
14.5%
14.5%
0.0% 100.0%
% OF HOMES