It is true the Boston condominium costs more than twice as much as the amount borrowed to pay for it. Sure, most people will have a down payment, but the hidden costs can add up.
There all also monthly utility costs and maintenance expenses, insurance and property taxes. If you opt to purchase a single-family home or townhouse, they have to be heated this time of year. The smaller the house the lower the heating and cooling costs and maybe the maintenance costs too.
Renting an apartment is often even more expensive if we compare comparable properties. Generally speaking, the owner needs to make a profit. It is becoming harder to pay the rent and save up to buy a property. We call it “rent trapping”.
Housing is expensive. There really isn’t any other way of looking at the numbers.
Home buying is definitely slowing down. Some of it is because of the season and some is due to the interest rates that have gone down but are still more than 6.5%. First-time home buyers in particular are facing a brutal market.
Let’s hope that Boston condo rates start going down or that wages go way up or that we find a way to create affordable housing. There is an urgent need for more housing in all price ranges.