Buyers will have to dig even deeper to meet the price of a single-family home in Massachusetts. August reports just landed and the Commonwealth hit another record-month with the median single-family home price now over $400,000.
"It is really cross-cutting across income levels. We see people who are earning over $100,000 a year that simply can't find homes that they can afford," said Citizens' Housing and Planning Association CEO Rachel Heller.
According to real estate tracker The Warren Group, single-family house prices are up nearly 5% compared to this time last year. Condo prices are up nearly 10%.
It's not because of affordability. In fact, the price of a condo is just about the same as a single-family house in Mass.
"It reflects the demand. People more and more want to live in walkable neighborhoods, they want to live near transportation, they want to live near their work, they want to live near schools. And it's different than what we were building in the past," said Heller.
She also said incomes aren't keeping up with the housing prices.
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"The number one solution is to build more," said Eric Berman, Mass. Association of Realtors.
Berman says a lack of inventory is a huge problem and is driving up prices.
Inventory for houses has dropped nearly 20% since 2018. The number of condos for sale has dropped more than 5%.
This month had the lowest number of single-family homes for sale in the month of August since MAR began reporting the data in 2014.
"We need a good variety of housing at all different price levels and sizes," said Berman.
Cox Media Group