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The true cost of homeownership in Boston

by Alonzo Turner

homeownership-income-affordability-home-prices-rankings

Earlier this week, Estately Blog released its rankings of U.S. cities by percentage of income spent on owning a home. Boston was named among the top 10.

In recent years, a surprising lack of inventory set to the backdrop of strong demand, high development costs and restrictive zoning has thrown Boston into something of an affordability crisis – or as Mayor Walsh would put it: a “middle income housing challenge.”

The results of the crisis can be seen in the report.

To become a Boston homeowner – in average terms and including mortgage, taxes, insurance, utilities fess, etc. – requires nearly 50 percent of a person’s annual income. It’s a much less daunting percentage than in Newark, where homeownership demands more than 75 percent of one’s income, but still considerable relative to the rest of the country. In some places, like Fort Wayne, Ind., homeownership costs average no more than 26 percent of a person’s income.

See how our city compares to the other top 15 metros below:

JamesGraph-5-25-01

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