Research Indicates Over 50% of Boston Homes Exceed $1 Million in Price
According to a recent study by real estate company Point2, over half of the homes in Boston listed on the market are priced at more than $1 million. The study, released earlier this month, reveals that 53.1% of current home listings in the city exceed the $1 million mark, with 9.4% surpassing $5 million. Boston ranks fifth among the largest cities in terms of the percentage of homes listed above $1 million, and second for listings above $5 million.
The study suggests that today’s housing market is challenging for the average buyer, due to elevated mortgage rates, surging home prices, a national housing shortage, and fierce competition. It emphasizes that buyers with a budget of $1 million or more are far from ordinary.
Point2’s research unveils that the median home price in Boston stands at $799,000, based on an analysis of the 30 most populous cities in the country, the 30 largest markets outside the top 100 most populous, and 30 markets with populations exceeding 50,000.
A previous study conducted by Point2 in 2022 reported a median home price of $723,000 for Boston, with 34.8% of homes valued above $1 million, and 4.7% exceeding $5 million. This data positioned Boston in sixth place in the rankings at that time.
In the current analysis, Boston has surpassed New York City in the proportion of homes worth $1 million or more, and has also surpassed both New York and San Francisco in the share of homes valued at $5 million or more. As a result, it has moved up from fourth place.
The four cities ranking ahead of Boston this year are all located in California: San Diego, with 58.6%; San Jose, with 60.6%; San Francisco, with 62.1%; and Los Angeles, with 63.6%.
The report also includes data on Worcester, another city in Massachusetts. Worcester has 2.1% of homes valued above $1 million, ranking it 24th among the 30 mid-size cities surveyed. The median home price in Worcester is $408,000 and was not included in the 2022 study.
Point2 notes in the report that despite a slowdown in the real estate market in 2022, luxury housing continues to experience strong demand. This is attributed to factors such as a surge in personal wealth and a significant number of high-end sales being made in cash, rendering them unaffected by changes in interest rates.