Researchers at the National Association of Realtors found that in congressional districts where more than half of homes are worth $500,000+, the average home ownership rate is 48%. In areas where sub-$500,000 homes are more readily available, the average home ownership rate is 65%.
In 2013, 7,740 homes were sold in Seattle. 4,463 (60%) of these houses were purchased for less than $500,000 and 482 (6%) for over $1 million.
Fast forward 5 years and between Jan 1 and Oct 31 of this year, 7,208 homes were sold in Seattle: 1243 (17%) for under $500,000 and 1242 (17%) for over $1 million. Next year, the number of 7-figure homes will surely exceed those available for less than half a million.
The Federal Reserve Bank of St Louis offers this sad depiction of what our dwindling sub-$500,000 housing supply does to home ownership.