2023 Update: Navigating Affordability Challenges for Home Buyers in Rhode Island and Massachusetts
In this updated 2023 edition, we revisit the crucial affordability challenges for prospective home buyers in Rhode Island and Massachusetts. As we mentioned in a previous blog, the issue of affordable housing continues to impact the real estate market. Recent data from the National Realtors highlights the challenging landscape for middle-income buyers. For example, only 23 percent of listings are affordable for them.
Stay Informed Navigating Affordability in Your Neck of the Woods
Consequently, we see a sharp contrast to five years ago. At that time, middle-income buyers could afford half of all homes on the market. Market Insider, utilizing the same data, further emphasizes the implications of affordability on this particular group of buyers. Therefore, prospective home buyers must stay informed about the latest median home prices. Moreover, consider affordability indexes and cost of living factors. By doing so, buyers can make informed decisions that align with their financial goals.
Affordability indexes and cost of living considerations
Rhode Island
According to the data from livingcost.com Rhode Island, “The cost of living in Rhode Island is $2006, which is 1.01 times less expensive than the average in the United States. Rhode Island ranked 30th most expensive and 27th best state to live in the United States.”
The average salary after taxes in Rhode Island is $3871, which is enough to cover living expenses for 1.9 months. To illustrate, here is an infographic from livingcost.org:
Source: Cost of Living in Rhode Island
Massachusetts is 10.7% more expensive than Rhode Island. Also, this data proves the driving prices upward due to the influx of buyers from Massachusetts.
Solutions for Rhode Island Buyers
“The most affordable city in Rhode Island is West Warwick. It encompasses only eight square miles and has a population of around 30,000. The Arctic Playhouse, Station Fire Memorial Park, Eagle Quest Golf Dome, C, and L Stables, and Impact Action Sports Park are a few of the most popular destinations in the city.”
As discussed in newhomesource.com, here is an outline of the most affordable cities in Rhode Island.
The Most Affordable Cities
Number one is West Warwick, second is Central Falls. Number three is Woonsocket, followed by Pawtucket. Then follows North Providence, Coventry, Johnston, Providence, Warren and finally East Providence. In a future blog, we will delve deeper into these towns, exploring their unique characteristics, housing market dynamics, and the opportunities they present for prospective buyers.
Massachusetts Cost of Living and Real Estate
Now, we will examine the cities and towns we serve in Massachusetts. Considering our demographic is for all of Rhode Island and parts of Massachusetts. The towns are Attleboro, Boston, Rehoboth, Seekonk and Westport. Using the same website, we go to the data on the cost of living in Massachusetts for Attleboro and Boston.
- The average cost of living in Attleboro is $2232, which is in the top 4% of the most expensive cities in the world, ranked 350th out of 9294 in our global list, 273rd out of 2202 in the United States, and 16th out of 92 in Massachusetts.
- The average cost of living in Boston is $3013, which is in the top 0.4% of the most expensive cities in the world, ranked 35th out of 9294 in our global list, 28th out of 2202 in the United States, and 1st out of 92 in Massachusetts.
According to bestplaces.com, the cost of living in Rehoboth is relatively low compared to towns nearby. In addition to Rehoboth, Seekonk is also reasonable.
“Although median home prices in Seekonk are slightly above the national average, they are still more affordable than other parts of Massachusetts. Additionally, groceries and other necessities are generally cheaper here than in many other places within driving distance. Overall, Seekonk offers a great balance between affordability and accessibility to nearby cities and attractions for those looking for a place to call home.”
The Dias Team
In closing, navigating the affordability challenges in 2023 is paramount for prospective home buyers. As we analyze the current data, we find that some cities and towns in Rhode Island, such as West Warwick, Pawtucket, and Coventry, offer more affordable housing options than others. Similarly, areas like Seekonk and Rehoboth in Massachusetts provide attractive opportunities for middle-income buyers looking to enter the housing market. By staying informed about the median home prices, affordability indexes, and cost of living considerations in these regions, buyers can make well-informed decisions and find homes that align with their financial circumstances. Despite the ongoing affordability crisis, there are still pockets of opportunity for those seeking to fulfill their homeownership dreams in Rhode Island and Massachusetts.