Washington, DC has long been the central point for those seeking power and influence in the U.S., and to go along with their grand ambitions, large and extravagant homes have been built. Over the years, the houses have changed hands, and now they belong to politicians and actors who’ve come to the nation’s capital to develop their dream.
With home prices around the country’s skyrocketing, knowing who lives in those million-dollar homes is an advantage to anyone looking to get into the market.
A New Phenomenon
The rising price of homes and real estate in DC hasn’t always been the norm! The massive jump in prices occurred about 15 or 20 years ago for many old-timers in the area and hasn’t stopped going up. The demand for homes in the region coincided with a dip in interest rates that made purchasing very lucrative.
When the housing market crashed in 2008 and 2009, the price of homes dipped just slightly but recovered and rose ever since.
Condos to Suburbs
As families grow within the confines of DC proper, they look for more and more space outside of the city center. Young families have begun trading in their condos for suburban homes that can run up to that million-dollar price range.
Many of these families and breadwinners aren’t politicians or hotshot attorneys. The key to getting those million-dollar homes isn’t to have a million dollars in the bank but to find the right house at just the right time.
DC is an old city, and since the price of homes has gone up in recent years, most people who own million-dollar homes are slightly older than the norm. Many bought their homes when the price was lower and have held on to them through good times and bad.
By using readily available data, it’s easy to see that the people who own these homes earn more than average, but they aren’t making millions of dollars every year. The average earnings of the million-dollar homeowners in DC are just $250,000 per year.
If you haven’t bought a home in DC yet, it can be hard to push your way into the overall market. The average cost of a home in Washington is $450,000, and that can be a challenging price tag for someone who’s just stepping into buying a home.
There are a few different ways you can end up living in a million-dollar home in DC! The most cost-effective is to purchase your home when the price is reasonable and build equity through the years. But if you didn’t have the foresight or ability to buy, then the simplest way is to start with a condo or other home and build your equity from there. Then you can sell your smaller, less expensive home and purchase something more significant and grander. It takes hard work and a little bit of savvy, but eventually, you’ll be showing off your million-dollar home!