Here's the salary you need to afford a home in Boston, Worcester
BOSTON - Looking to buy a home near the two biggest cities in Massachusetts? It won't be easy without a six-figure income.
A recent report from real estate company Redfin found that homebuyers need to make at least $115,000 to afford "the typical U.S. home." That's already $40,000 more than what the average household makes. And they'll need more than that if they're looking to buy around Boston or Worcester.
In the Boston metro area, the annual income required to afford a median-priced home was $194,188 as of August 2023. That's a year-over-year increase of 22.7%, according to Redfin. The median monthly mortgage payment is $4,855 and the median home sale price was $712,000.
In the Worcester area, homebuyers need an income of $118,640. The median home sold for $435,000 with a monthly mortgage payment of $2,966.
The map below shows the 50-plus cities where a six-figure income is needed to buy a median-priced home.
"Even places that historically have been affordable now need six figures," Redfin chief economist Daryl Fairweather told CBS MoneyWatch.
Last month, Massachusetts Gov. Maura Healey introduced a $4 billion bill with the goal of building tens of thousands of new homes. The plan imposes fees on high-priced real estate, with the money going toward building more affordable housing.
The bill calls for 22,000 new homes for low-income families and 12,000 new homes for households that are considered middle-income.