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In his famous work, The Republic, whose title in Greek is “Politeia”, Socrates ruminates about the four virtues of a “just city”: wisdom, courage, moderation and justice. Today, in Boston we have many of these characteristics, and I feel we’re improving each year.
However, at some point to be a truly “just city” we need to address one of the biggest issues that our residents are facing – which is the housing crisis.
Housing prices are skyrocketing, forcing many to spend more than half of their incomes on rent or mortgages.
According to a Pew Research Center report confirms that skyrocketing home prices alongside slow wage growth have pushed housing unaffordability for buyers under 40 to heights not seen since the 2006 housing bubble peak.
Key National Data Points (2019–2024)
| Metric | 2019 | 2024 | Five-Year Change (Inflation-Adjusted) |
|---|
| Median Home Value | $269,600 | $350,000 | +30% |
| Median Income (<40 Households) | $92,700 | $100,900 | +9% |
| Price-to-Income Ratio | 2.9 | 3.5 | +0.6 points |
Additional Context from the Report
- The Historical Context: Prior to the year 2000, the national price-to-income ratio for young adults historically hovered around 2.5. The current ratio of 3.5 sits just below the all-time bubble peak of 3.6 recorded in 2006.
- Surging Monthly Payments: Driven by both home values and a sharp rise in mortgage rates from roughly 3.9% to 6.7%, the typical modeled monthly payment for young buyers jumped 64% over this five-year window.
- Renter Exclusion: Due to these compounding factors, the share of young renter households capable of qualifying to buy a home plummeted from 56% to 37%.
- Widespread Disparity: The affordability squeeze is not isolated to coastal cities; home price growth outpaced young adult wages in 142 out of the 160 metropolitan areas analyzed by researchers.
- Public Sentiment: This severe economic divergence explains why 89% of U.S. adults under 40 state that it is significantly harder for their generation to purchase a home than it was for their parents.
Source:
Peace be with you
Affordable Boston condos for sale
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Affordable Boston condos for sale $400,000 – $500,000
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