That’s the return on investment for owning an AirBnB… in South Bend, Indiana. iPropertyManagement compiled a list of top 100 vacation rental locations and Seattle is not on the list. Their ranking formula was based on median rental prices, historical occupancy rates, median sale prices and local ownership costs, such as property taxes and utilities. Seattle is at a huge disadvantage when it comes to the last 2 criteria.
Seattle is also not on Redfin’s list of top 25 home buying destinations that have it all: good schools, access to public transit, low crime AND affordability. Chicago, according to Redfin, is the place to be, with more than a dozen spots on the list. According to Redfin’s Illinois agents, high local taxes – about 2% of home values – are one reason why their prices are so low. Will Seattle’s house prices fall as our taxes rise?
The Top 5%
Realtor.com reports that nationwide, luxury housing (defined as homes priced in the top 5 percentile) took longer to sell and appreciated less over the past year, compared to the rest of the market (5.1% versus 6.9%). In particular, CoreLogic noted that low-priced homes (75% of median or below) appreciated by 9.7 percent. Javier Vivas, Realtor.com’s director of economic research, pointed out that based on the age of luxury inventory, it seems high-priced housing is being constructed at a pace that exceeds demand. Definitely not the case at the other end of the spectrum.