White House value falls $23 million after housing market crash

03 February 2009

The US President's residence, amongst the most expensive houses in the US, at around $308,058,000, has lost more than $23 million in value compared to last year, if the White House were actually a home that could be bought and sold.

The White House's estimated value has decreased by 7.2 per cent, or more than $23 million dollars, in the past year but its value has nearly doubled from the $167,861,500 in January 2001 when George Bush was sworn in as president, according to independent real estate service provider Zillow.com.

As Barack Obama moved along with his family into his official residence for the next five years, the president would not be able to afford the house on his salary had the White House been mortgaged to him.

Had the president to take out a standard 30-year mortgage at a fixed rate on the White House today, assuming 20 per cent down payment and a 6 per cent rate interest rate, his monthly payment (including principal and interest) would be $1.48 million.

Even with the treasury department's proposed 4.5 per cent rate on 30-year mortgages, a monthly payment would still top $1.25 million.

Even if Obama were to spend 30 per cent of his gross income as US President on housing, it would add up to $133,333 per year, or $11,111 per month, still falling short by more than $1 million on a monthly payment for this home.