Seattle Homes “Earn” Much More than Minimum Wage
According to the report, a typical home in the United States appreciated 7.6% over the last twelve months, to a median home value of $210,200 in February 2018, a $14,800 difference from a year before. Assuming a standard work week of 40 hours (or 2,087 hours in a year), said home “made” $7.09 during every hour a typical homeowner spent at the office. It is worth noting that the federal minimum wage is just a little more, $7.25 an hour.
Now that we have looked at a typical home in the United States, let us look at hourly equity gain in various cities across the country. According to the Zillow report, the median U.S. household income is $58,978, which translates to roughly $28 an hour. Owners of median-value homes in six cities – San Jose, San Francisco, Seattle, New York, Oakland and San Diego – gained more than said rate in home equity every working hour. Homes in San Jose, CA ‘earned’ a staggering $99.81 in equity per hour, coming in at number one on Zillow’s list. San Francisco came in second place, with homes ‘earning’ $60.13 per hour. Seattle homes came in third place, ‘earning’ an impressive $54.24 an hour.
Home equity is obviously much different than bimonthly paychecks: it can only be collected when a homeowner decides to sell the property and is subject to various taxes. However, the report should make Seattle homeowners excited, as it does a great job of illustrating just how much they can gain by investing in the local real estate market. The complete (and fascinating!) report can be found here.
Thinking of buying or selling your property? Curious about the market? Contact us today!