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Data on this report is based on areas within the legal city boundary, outlined in black on the map. Any additional neighborhoods shown on the map are associated with the city by name and are included for reference only.



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 2023. Updated quarterly.
  • Setting, Housing Stock, Homeownership: 2022 (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 25,172 people, 9,782 houses or apartments, and a median cost of homes of $1,628,485, 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 65.76% of the city's housing units. Other types of housing that are prevalent in Mercer Island include large apartment complexes or high rise apartments ( 32.05%), duplexes, homes converted to apartments or other small apartment buildings ( 1.04%).

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 67.58% of Mercer Island's homes, and 48.05% 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 40.37% of the city's housing hails from this era. Other housing ages represented in Mercer Island include homes built between 1970-1999 ( 35.67%) and housing constructed between 2000 and later ( 20.72%). There's also some housing in Mercer Island built before 1939 ( 3.23%).

Mercer Island Home Appreciation Rates

Some of the lowest real estate appreciation rates in America over the last ten years have been in Mercer Island, where house values have increased just 23.98%, which is annualized rate of 2.17%. This rate is lower than the appreciation rate found in 90% of the cities and towns in America.

Over the last year, Mercer Island appreciation rates have trailed the rest of the nation. In the last twelve months, Mercer Island's appreciation rate has been -0.38%, which is lower than appreciation rates in most communities in America. In the latest quarter, NeighborhoodScout's data show that house appreciation rates in Mercer Island were at -1.24%, which equates to an annual appreciation rate of -4.88%.

Notably, Mercer Island's appreciation rate in the latest quarter is one of the lowest in America.

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

$1,628,485

Mercer Island, WA Home Prices
> $843,000
$632,001 - $843,000
$421,001 - $632,000
$337,001 - $421,000
$253,001 - $337,000
$169,001 - $253,000
$84,001 - $169,000
$42,001 - $84,000
$0 - $42,000
80.3%
80.3%
4.7%
4.7%
6.0%
6.0%
3.2%
3.2%
3.3%
3.3%
0.9%
0.9%
1.0%
1.0%
0.0%
0.0%
0.7%
0.7%
0% 100.0%
% of Homes
Very High

for Washington

Very High

for nation

Number of Homes And Apartments:

9,782

Mercer Island Appreciation Rates

Rent & Ownership

Average Market Rent:

$5,168 / per month

Homeownership Rate

Owners
Renters
67.6%
67.6%
32.4%
32.4%
0% 100.0%
% of Homes

Vacancy Rate

Vacant
Occupied
7.0%
7.0%
93.0%
93.0%
0% 100.0%
% of Homes

Housing Market Details

Age of Homes

2000 or Newer
1970 - 1999
1940 - 1969
1939 or Older
20.7%
20.7%
35.7%
35.7%
40.4%
40.4%
3.2%
3.2%
0% 100.0%
% of Homes

Types of Homes

Single-Family
Townhomes
Small Apt. Buildings
Apt. Complexes
Mobile Homes
Other
65.8%
65.8%
0.6%
0.6%
1.0%
1.0%
32.1%
32.1%
0.5%
0.5%
0.0%
0.0%
0% 100.0%
% of Homes

Home Size

No Bedroom
1 Bedroom
2 Bedrooms
3 Bedrooms
4 Bedrooms
5 or more bedrooms
4.8%
4.8%
11.9%
11.9%
19.2%
19.2%
19.1%
19.1%
29.0%
29.0%
16.0%
16.0%
0% 100.0%
% of Homes