Title: Housing Affordability Crisis Intensifies in Greater Boston as Median Home Prices Soar to $910,000
Publication: CBS Boston
Date: [Insert Date]
BOSTON – In the wake of new data released by the Greater Boston Association of Realtors, revealing that the median house in Greater Boston sold for a staggering $910,000 in July 2023, concerns over the affordability of housing have resurfaced. The sharp increase in home prices has left many young individuals and families struggling to enter the market.
Audrey Stein, a 27-year-old resident of Watertown who rents her home, expressed her disappointment in the current housing situation. “I’m 27 and no one that I know owns a property,” Stein said. Calla Begley of Boston echoed her sentiment, stating, “It seems just less and less likely to be a young person, living in any type of city these days.”
For young families striving to purchase their first home, the skyrocketing prices come as no surprise but still remain shocking. “Absurd. It’s absurd,” said Kristina Simkus, who has been renting with her fiancé in Quincy for nearly two years. Simkus expressed her disillusionment, saying, “Like you start to think…should I just move somewhere else?”
Arthur Deych, the owner of Red Tree Real Estate in Boston, frequently hears about this issue from clients. He believes the problem extends beyond the high purchase prices. “I feel bad for people because it’s not only the $910,000 that cost a lot of money, it’s also water, sewer, trash removal, taxes, insurance,” Deych stated.
With housing prices in Greater Boston continuously rising over the past two decades, potential buyers are seeking alternatives to navigate the affordability crisis. Anthony LaMacchia, owner of LaMacchia Realty, has launched a service to connect buyers and sellers with assumable mortgages – mortgages that can be transferred from buyer to seller. This approach allows buyers to inherit the seller’s mortgage at a lower interest rate.
However, obstacles arise due to the reluctance of national lenders to offer assumable mortgages and state regulations that hinder their popularity. LaMacchia reassures hopeful buyers, stating, “This is something we’re actively working on, and we are coming up with several options for people to be able to do this.”
Despite potential solutions like assumable mortgages, the staggering income requirements to afford a home in Greater Boston pose a significant challenge for many. According to Nerd Wallet, a first-time homebuyer with good credit and minimal debt would need a household income of $220,000 to afford a $910,000 home. Comparatively, the median household income in Boston stands at $81,744, according to the 2021 US Census.
The increasing disparity between home prices and household incomes calls for innovative approaches and a collaborative effort among policymakers, real estate professionals, and community members to address the mounting housing affordability crisis in Greater Boston.
[List of Related Articles]
1. “Affordable Housing Efforts Fall Short in Greater Boston” – WBZ-TV’s Question Everything series delves into the challenges and consequences of affordable housing initiatives. [Link to article]
2. “Homeownership Dreams Elude Many Young Bostonians” – Hear from young individuals struggling to buy their own homes as prices continue to surge in Greater Boston. [Link to article]
3. “Assumable Mortgages: A Possible Solution to the Housing Affordability Crisis in Greater Boston” – Learn about LaMacchia Realty’s innovative service connecting buyers and sellers with assumable mortgages. [Link to article]
4. “Rising Housing Prices Expose the Growing Income Disparity in Greater Boston” – Explore the staggering income requirements for homeownership and the implications for residents in the region. [Link to article]
By Kristina Rex, Reporter for WBZ-TV News.