Boston Condos for Sale and Apartments for Rent

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Boston condos prices above affordability?

Home values are 25% above affordability norms, the worst it’s been in years, according to a new report from Zillow. That increase is forcing many Boston condo buyers to reset their expectations, with the market reflecting those decisions. 

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Boston condos

How much has the average mortgage payment increase from last year?

Nationally, the average monthly mortgage payment is now $1,850, 75.5% or $800 higher than it was a year ago. Even as home values dropped from their June peak, rising rates aren’t helping any affordability gains buyers had. 

Zillow senior economist Nicole Bauchaud said the next several years appear to be set up for affordability to be a major challenge for homebuyers. 

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Boston condos for sale

How is the home sale inventory?

Inventory remains tight, real income growth is dismal, mortgage rates show no signs of dropping, and there is plenty of pent-up demand ready to bid prices back up if they reach a level would-be buyers can once again afford. Filling the housing deficit continues to be the key to long-term affordability, but the recent slowdown in single-family construction is not a good sign that the market is getting closer to building enough to meet demand.

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Boston condos for sale

How much do home values need to decrease to become affordable for average buyer?

According to Zillow, home values would have to fall 24.7% for mortgage affordability to return to the 22.8% norm, but while some markets are closer to that, many have seen deteriorating affordability with some at least 37% above where they need to be.

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Boston condos for sale

What is the average Boston salary compared to Boston condo prices? 

Boston’s typical home value is $651,398. Its median household income of $104,440 means the share of income needed to afford a typical mortgage is 37.8% compared to its 32.2 % historical norm.

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Boston condos