Home prices continue to rise making homeownership harder to achieve as each generation readies to enter the real estate market, and it’s looking that way within the six counties in Massachusetts.
Point 2 Homes recently completed a study of home affordability by generation based on net worth and income. By comparing affordable house prices with local median prices, their report was able to determine which generation had it worse when it came to home affordability.
Several counties in Massachusetts are out of reach for various generations, the report found.
But which generations had it worse, and where?
Essex County: With a median home price of $599,925, Essex County homes are out of reach for the typical Baby Boomers who, according to the report, can afford no more than $332,572. They’re also out of reach for most Millennials who, according to the report, can afford $472,123, as well as Gen Z buyers who can only afford $267,402. The only generation to come close to affording a home in Essex County is Gen X with their maximum affordable property price at $595,256.
Middlesex County: The median-priced home in Middlesex County is $726,225, making it unaffordable for the Baby Boomers, Millennials and Gen Zers. The only generation who could afford a home in Middlesex County is Gen X since they can spend a maximum of $762,532.
Norfolk County: Norfolk County homes have a median price of $708,000 and are unaffordable for three of the generations making it only affordable for Gen Xers who can exceed the median price by $24,348.
Essex County: Essex County is out of reach for all generations as well. It’s out of reach for Baby Boomers with their $332,572 affordability, Millennials, even though they can afford a comfortable $472,123 according to the report, don’t come close. Same thing for Gen Z buyers who can only afford $267,402. Even typical Gen Xers who can afford $595,256, can’t afford a home in Essex County.
Suffolk County: With the highest median home price of all counties in Massachusetts, Suffolk County’s $809,975 median home price is above the affordability amount for each of the four generations. Gen Zers and Baby Boomers have the lowest purchasing power at $209,955 and $268,778 respectively. Both Millennials and Gen Xers don’t come close to affording a home in Suffolk County with their affordability of $604,631 and $544,551, respectively.
Worcester County: Worcester County, which has a reasonable median price of $424,950 is only affordable to most Gen Xers. Typical Millennials do come close to affording a home here though with their $419,312.