Home buying power in the Boston metro area decreased 66.78% from 1970 to 2022, per a new RealtyHop study.
Home buying power is the ratio of annual income versus the average house price in 1970 (when boomers started buying starter homes) compared to 2022.
Why it matters: Buying a house is far less accessible today than it was for previous generations.
By the numbers: The average Boston-area home cost $19,600 in 1970. The number rose to $684,900 by 2022.
Median income over the same timespan went from $9,133 a year to $106,015.
The big picture: The largest affordability gaps are along the West Coast, with all five of the least affordable cities in California.
Meanwhile, the Midwest has remained the most affordable region for homebuyers. Of the 117 cities included in the study, Detroit is the only one where buying is easier today than it was 50 years ago.
Reality check: Mortgage rates were in the double digits in the 1970s and 80s. Today they're hovering around 7%.
