Housing Prices: Million Dollar 'Starter' Homes in Blue States like MA

[Kathy in Cambridge]

It's really nutty-you HAVE to read this article. How can anyone afford to live here anymore? The Census Bureau says Cambridge is the city with the highest percentage of $1-million- plus single-family homes in the country. Incredible. $1 mil buys you jack in Metro West.

http://www.boston.com/news/globe/magazine/articles/2004/09/12/would_you_pay_a_million_dollars_for_this/


<snip>
"Home prices in Massachusetts are six times what they were in 1980 -- by far the largest spike in the country. But salaries here are only about three times what they were in 1980, creating an enormous imbalance between what we're earning and what we're paying for our houses. There's no way this can continue. Except if it does."

<snip>
"Look at the charts Lawler keeps to track the growth in housing prices, state by state, and you see those "two Americas" the Democrats have been talking about so much these days ...Drill down even deeper, and you see that this is essentially a Northeast/West Coast -- or "blue state" -- phenomenon. Of the 14 states that have seen the biggest jumps in home prices since 1975, all but one of them (borderline-blue New Hampshire) voted for Al Gore in 2000. Meanwhile, 24 of the bottom 26 states are solidly in the red. People can debate how much the blue and red states diverge in terms of values, but when it comes to housing, there's no question that we live in two profoundly different worlds.

[Quetzal]

1. Where in Boston do you live?

I'm in my brother's frat right now.

[Kathy in Cambridge]

2. Cambridge-where are you?

[Quetzal]

3. Commonwealth Avenue

right next to the giant CITGO sign.

I am just visiting and I actually return to New York City via bus in an hour and a half. After that, it is back to Hawaii.

[Kat45]

4. Man, that's absurd!

That's even worse than I thought it was. I wish the article had a companion piece about what people of modest means are doing in this situation. Everyone has to live somewhere--where the heck are people living?

[skippysmom]

5. I read this yesterday

It is completely absurd. I have no idea how anyone can afford to live in Mass anymore. Who makes enough money to pay for a million dollar house? It's not like the salaries are that much higher here than in other more affordable areas.

When my husband and I decide we want a larger house, I think we're going to have to sell our little 2BR ranch and move closer to my parents in CT. We can find a larger house for less money there.