How much house does a $72K annual household income buy in Central Mass.?
Photo | Grant Welker
Homes under construction on Old Webster Road in Oxford
One of the biggest worries Central Massachusetts businesses have is not only finding and retaining qualified staff, but whether those potential employees can find an affordable place to live.
By any measure, Massachusetts has been in the midst of a housing crisis for more than two decades.
The Boston Foundation’s Greater Boston Housing Report Card 2019 said Massachusetts has a highly educated workforce, and a strong economic base in education, healthcare, professional services, and finance that has attracted employers to locate or expand here.
But the annual survey said Greater Boston has become a victim of its own success.
“Having failed to produce an adequate supply of housing for decades, the region is not prepared to accommodate the population growth that is being propelled by the economic boom,” the researchers wrote. “For a region with a track record of sluggish housing production, this has predictably resulted in demand outstripping supply, sending both rents and home prices soaring.”
While Central Massachusetts is often considered the affordable alternative to Greater Boston, the housing crisis has led to soaring prices -- up year-to-year between 5-10% in most communities -- as rising demand is putting pressure on a limited supply of homes for sale.
To gauge how far Central Massachusetts salaries can go with the region's housing, Worcester Business Journal looked at single-family homes for sale in five Central Massachusetts communities -- Auburn, Holden, Millbury, Shrewsbury, and Worcester -- to see what households earning what the U.S. Census Bureau says is the median Worcester County income of $72,000 can spend on housing.
While many families spend more, the rule of thumb is to pay about 30% of gross monthly income on housing. At $72,000, that’s $1,800 per month, not including taxes and insurance. At that income, a family could afford a $375,000 home. With 5% or $18,750 down, that leaves the monthly payment for a 30-year fixed rate mortgage at 3.72% at $1,644.
Here’s what the MLS Property Information Network listed at that price at press time:
In Auburn, there are a dozen homes staring at $159,900, including a 1,070-square foot, two-bedroom bungalow in need of a new septic system, to a seven-room for colonial for $375,000.
Holden lists eight homes meeting the price requirement from a three-bedroom Cape requiring a winter project for $180,000, to a seven-room split entry on a cul-de-sac for $374,900.
Millbury offers nine single-family homes for sale. At the top end is a 10-room antique colonial farmhouse for $349,999. There’s a two-bedroom ranch-style home needing cosmetic improvement for $160,000.
In Shrewsbury, there are 13 homes meeting the criteria. For $187,200, there’s a three-bedroom cape on Main Street advertised as, "Time to build sweat equity in this antique cape.” For $369,427, there’s a four-bedroom, two-bath cape overlooking Lake Quinsigamond.
At six dozen, Worcester had the most number of homes to offer. The lowest priced house is a 750-square-foot townhouse on Belmont Hill for $154,900. At the top end is a new three-bedroom split entry on Granite Street for $369,900.
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What about those of us that are single and don't make a living wage in this county? That's a lot of people headed into homelessness.
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