Oct 15, 2024 - News

Starter homes out of reach for many in Boston

Sami Sparber,
Mike Deehan

A bar chart showing the income needed to afford a home in select areas. A home is considered “affordable” if a buyer spends no more than 30% of their income on housing, assuming a 3.5% down payment. The highest metro is San Jose, Calif., at $289k. The lowest is Detroit, at $24k. In Boston, one needs a $162k salary. — Data: Redfin; Note: Includes the largest 50 metros by population. A home is considered "affordable" if a buyer spends no more than 30% of their income on housing, assuming a 3.5% down payment; Chart: Erin Davis/Axios Visuals

Just 3.3% of Boston-area starter-home listings are affordable for middle-income households, according to Redfin's latest analysis.

The big picture: House shoppers in August needed a $162,016 annual income, up 2% from a year earlier, to afford the metro area's typical starter home — which cost $$490,000, per Redfin.

Greater Boston's median household income is $121,102 this year, researchers estimate.

Catch up quick: Mortgage rates are down, offering home buyers some relief, but a shortage of available houses is keeping prices high.

Attracting first-timers is one reason why homebuilders are churning out smaller, less expensive houses.

What we're watching: Many 2024 voters say home affordability is a top concern.

Former President Donald Trump and Vice President Kamala Harris have different proposals for tackling it.

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Starter homes out of reach for many in Boston

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