Mercer Island, WA—98040
Real Estate Data & Market Trends
Key Metrics at a Glance
Home Price Trends — Mercer Island, WA
As of Oct '25, the median home price in Mercer Island, WA is $2,254,000, with a year-over-year change of 0.1%. This indicates that home prices in Mercer Island, WA are flat. According to Zillow, the 1-year price projection is 0.2%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $2,254,000 | 0.1% |
| Single Family | $2,377,000 | -0.2% |
| Condos | $619,000 | -3.3% |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | $425,000 | -8.4% |
2 Bed | $726,000 | -3.7% |
3 Bed | $1,854,000 | -0.6% |
4 Bed | $2,395,000 | 0.0% |
| 5 Bed | $2,905,000 | -0.1% |
% of Housing Stock
Rental Trends — Mercer Island, WA
As of July '25, Rentcast reports the average rent in Mercer Island, WA is $4,510, with a year-over-year rent change of 1.6%. Per bedroom, the median rent as of July '25 in Mercer Island, WA is studios: $2,130, 1-bedrooms: $2,360, 2-bedrooms: $3,310, 3-bedrooms: $5,290, 4-bedrooms: $7,040. The most common rental property sizes in Mercer Island, WA are 2-bedroom and 1-bedroom, accounting for 40.1% and 27.6% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $4,200 | $4,510 |
| Studio Rent | $1,960 | $2,130 |
| 1 Bed Rent | $2,000 | $2,360 |
| 2 Bed Rent | $3,200 | $3,310 |
| 3 Bed Rent | $5,500 | $5,290 |
| 4 Bed Rent | $6,700 | $7,040 |
% of Rental Stock
Property Listings — Mercer Island, WA
As of Oct '25, Realtor.com reports that the median days on market for a home in Mercer Island, WA is 51. This is a increase of 28.0% from last year, suggesting that homes are sitting on the market longer than last year. The percentage of listed homes with a reduced price is 19.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $3,130,000 | 29.0% |
Listing Count | 84 | 15.0% |
| Listings as % of Homes | 0.3% | 15.0% |
Days on Market | 51 | 28.0% |
Demographics — Mercer Island, WA
As of the latest ACS Survey released in 2023, Mercer Island, WA has a population of 25,300, which has remained stable by -0.8% over the past 5 years. Mercer Island, WA is a moderately popular place for families, as children make up 22.1% of the population. The area has a highly educated workforce, with 78.8% of adult residents holding a bachelor’s degree or higher. There are many residents working remotely, with 35.7% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 25,300 | -0.8% |
% Under 18 | 22.1% | -6.8% |
% Seniors | 21.0% | 2.9% |
% WFH | 35.7% | 218.8% |
% w/ College Degree | 78.8% | -0.3% |
As of the latest ACS Survey released in 2023, Mercer Island, WA is a predominantly white area, with 65.3% of the population identifying as white. The white population has shrunk by 8.7% in the last 5 years. The second most common race or ethnicity in Mercer Island, WA is asian, making up 22.3% of the population. Foreign-born residents account for 24.5% of the population in Mercer Island, WA, and this percentage has increased by 16.7% as of the ACS Survey 5 years prior, suggesting more immigrants are calling the area home.
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 65.3% | -8.7% |
% Black | 1.4% | 16.7% |
% Hispanic | 2.3% | -30.3% |
% Asian | 22.3% | 12.1% |
% Foreign Born | 24.5% | 16.7% |
Mortgage and Risk — Mercer Island, WA
According to HUD data as of 2023, there were 328 mortgage originations in Mercer Island, WA, of which 99.0% of loans were conventional mortgages. The average loan-to-value was 46.0%, with 2.0% above 90% LTV (normal). This implies small mortgage risk in Mercer Island, WA. Investor activity is low, as 1.0% of loans were by investors. 5.0% of loans were cash-out refinances, suggesting few homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 328 |
% Conventional Loans | 99.0% |
% Government Loans | 1.0% |
% Investor Loans | 1.0% |
% Second Loans | 2.0% |
% Cash Out Refinance | 5.0% |
Loan Activity
Rentals and Section 8 — Mercer Island, WA
As of 2024, the percent of homes in Mercer Island, WA under the Section 8 program is 2.7%. This is considered low, suggesting that the neighborhood is sparsely composed of Section 8 homes. Section 8 opportunity is good when HUD pays more than market rent. 1-bedroom and 2-bedroom units appear to be good home sizes to consider for Section 8 housing in Mercer Island, WA, because HUD payments exceed market rent, while 3-bedroom and 4-bedroom units do not.
Section 8 Market Size
Total Units under HUD | 108 |
Total Units Section 8 | 91 |
% Rentals under Section 8 | 2.7% |
% Occupied Section 8 | 100.0% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $830 | $2,000 | $2,830 |
| 2 Bedroom | $100 | $3,200 | $3,300 |
| 3 Bedroom | -$1,150 | $5,500 | $4,350 |
| 4 Bedroom | -$1,630 | $6,700 | $5,070 |
Affordability — Mercer Island, WA
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 10.6 |
| Median Home Price | $2,254,000 |
| Median Household Income | $202,000 |