Housing Out of Reach as Costs and Mortgage Rates Rise

The monthly costs—mortgage payments, property taxes, and insurance—of a typical low-end home in the Boston region has reached $3,600 a month. A typical home costs $5,000 a month.

2 minute read

November 7, 2022, 5:00 AM PST

By James Brasuell @CasualBrasuell

White house with For Sale and SOLD sign

Sundry Photography / House for sale

A recent study of the Greater Boston housing market data from the past year reveals the consequences of rising housing costs in the region, namely stress for renters and fewer potential homebuyers able to cover the cost of mortgage payments.

The “combination of record-high house prices and sharp increases in mortgage interest rates has greatly reduced the number of renter households that can afford the typical home in the region―or even the typical low-end home,” writes Daniel McCue to summarize the findings of the “Greater Boston Housing Report Card 2022,” published by the Boston Foundation.

The findings also note the rising cost of homes in the region is of particular significance in Black and Hispanic households, “which threatens to extend significant existing racial and ethnic inequities in the region’s housing market.”

According to the study, asking rent increased by 11 percent in the region over the past 12 months. Things aren’t much better on the homeowner market: “At last measure in September 2022, the value of a typical home in the Boston metro area had risen to $652,000, which is $57,000 higher than a year ago,” writes McCue. The rising mortgage interest rates is making it tougher to cover the cost of mortgage payments, even for people who could afford to buy a home. “Between September of 2021 and September of 2022, interest rates on a 30-year mortgage more than doubled, rising from 2.9 percent to 6.11 percent. This, in combination with the rise in home prices, lifted monthly mortgage payments on the typical home up $1,400 per month over the past year to $3,800 by September 2022,” according to the article.  

Wednesday, November 2, 2022 in Boston Indicators

babyt Boomer Homeowners

The Shifting Boomer Bulge: More Bad News for America’s Housing Crisis?

In the first of a two-part series, PlaceMakers’ Ben Brown interviews housing guru Arthur C. Nelson on the sweeping demographic changes complicating the housing market.

March 12, 2023 - PlaceShakers and NewsMakers

Aerial view of snowy single-family homes in suburban Long Island, New York

New York Governor Advances Housing Plan Amid Stiff Suburban Opposition

Governor Kathy Hochul’s ambitious proposal to create more housing has once again run into a brick wall of opposition in New York’s enormous suburbs, especially on Long Island. This year, however, the wall may have some cracks.

March 20, 2023 - Mark H. McNulty

Yellow on black "Expect Delays" traffic sign

A Serious Critique of Congestion Costs and Induced Vehicle Travel Impacts

Some highway advocates continue to claim that roadway expansions are justified to reduce traffic congestion. That's not what the research shows. It's time to stop obsessing over congestion and instead strive for efficient accessibility.

March 14, 2023 - Todd Litman

Pedestrian stoplight with green 'walk' silhouette lit up and blurry city buildings in background

Historically Redlined Neighborhoods Have Higher Rates of Pedestrian Deaths, Study Says

The consequences of historic redlining continue to have consequences in the present day United States. Add another example to the list.

16 minutes ago - Streetsblog USA

A toll payment facility in Florida.

Tolling All Lanes

Bay Area transportation planners are studying a radical idea to reduce traffic congestion and fund driving alternatives: tolling all lanes on a freeway. Even more radical, the plan considers tolling parallel roads.

March 21 - San Francisco Chronicle

Close-up of person holding up smartphone next to contactless fare reading device on bus

Federal SMART Grants Awarded for Transportation Safety, Equity Projects

The grant program focuses on the use of technology to improve safety, accessibility, and efficiency in transportation.

March 21 - U.S. Department Of Transportation

Planner II

City of Greenville

Planner I

City of Greenville

Rural Projects Coordinator (RARE AmeriCorps Member)

Resource Assistance for Rural Environments (RARE) AmeriCorps Program

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.