A typical home in the Boston-Cambridge-Newton, Massachusetts metro area costs $393,000, more than the national median home value of $194,500.
The median home value in Boston is also higher than in Massachusetts as a whole, where the typical home is worth $352,100.
Residents of areas with more expensive real estate also tend to have relatively high incomes. In Boston, the typical household earns $78,800 annually, higher than both the $70,628 median household income statewide and $55,775 national figure. Boston has the highest median household income of any Massachusetts metro area.
Home values tend to be higher in dense, urban areas, where space is limited and land is more expensive as a result. The priciest homes in the country are in cities along the East and West Coast, where population density is also among the highest nationwide. In the Boston-Cambridge-Newton metro area, there are 1,305 people per square mile, far greater than the average urban population density of 283 Americans per square mile across all metro areas nationwide. Boston has the highest population density of any Massachusetts metro area.
Home values in the metro area may also be augmented by the health of the local job market. People often relocate for occupational reasons, and an area with lower unemployment is more likely to have more expensive real estate. The Boston-Cambridge-Newton metro area’s unemployment rate was 3.5% as of August 2016, lower than the 4.9% jobless rate nationwide.
Improved unemployment among the Boston-Cambridge-Newton workforce over the last five years — like most of the country — may have helped increase home values as a result. Since August 2011, the Boston unemployment rate has fallen by 3.0 percentage points. Over the same period, home values in the metro area increased by 10.4%. Nationwide, the unemployment rate improved by 4.1 percentage points as the median home value increased by 12.0%.
Areas with high home values are often fairly well-educated. In addition to the better-paying jobs that educated residents often hold, the presence of good schools and universities are likely to increase demand for nearby homes. In Boston, 46.0% of adults have at least a bachelor’s degree, a larger share than the 30.6% of Americans with similar education nationwide.
|10||Santa Rosa, CA||$512,100|
|9||Oxnard-Thousand Oaks-Ventura, CA||$528,700|
|8||Los Angeles-Long Beach-Anaheim, CA||$540,600|
|7||Santa Maria-Santa Barbara, CA||$547,600|
|4||Urban Honolulu, HI||$629,900|
|3||Santa Cruz-Watsonville, CA||$668,300|
|2||San Francisco-Oakland-Hayward, CA||$718,400|
|1||San Jose-Sunnyvale-Santa Clara, CA||$823,700|