Massachusetts Homeownership: Amount of Income Spent on Housing Costs Varies by Location
By: Kevin Pryor June. 18, 2018
A recent study by Gavop analyzed the proportion of income that is spent on housing costs by homeowners with a mortgage in Massachusetts. The cost of homeownership is the percentage of income allocated to expenses such as mortgage payments, real estate taxes, home insurance, and utilities.
The data show that homeowners with a mortgage in Massachusetts pay a statewide median value of 33.0 percent of their income on housing costs; this is a bit higher than the national average of 30.9 percent. Gavop used data from the United States Census Bureau for the analysis.
Further examination showed that Massachusetts has a median annual housing cost of $24,828 for those with a mortgage, a median income of $75,297, and a median home value of $366,900. The following table shows how the state’s figures are higher than the overall national values.
| Location | Housing Cost for Homeowners with a Mortgage as a % of Income | Annual Housing Costs for Homeowners with a Mortgage | Median Income | Median Home Value |
|---|---|---|---|---|
| Massachusetts | 33.0% | $24,828 | $75,297 | $366,900 |
| United States | 30.9% | $17,832 | $57,617 | $205,000 |
County-level numbers show that residents of Suffolk County who have a mortgage spend the most on housing costs. This is because the area has the highest median percentage of income dedicated to housing costs, at 45.5 percent. Residents of Essex County spend the second most on housing costs, at 34.8 percent, followed by Hampden County at 34.7 percent, Bristol County at 33.9 percent, and Hampshire County at 32.9 percent.
Top 5 Counties with the Highest Housing Costs as a Percentage of Income
| Rank by Homeowners’ Contribution to Housing Costs as a % of Income (Highest to Lowest) | County | Housing Costs for Homeowners with a Mortgage as a % of Income | Annual Housing Costs for Homeowners with a Mortgage | Median Income | Median Home Value | Number of Housing Units |
|---|---|---|---|---|---|---|
| 1 | Suffolk | 45.5% | $27,504 | $61,796 | $472,500 | 333,291 |
| 2 | Essex | 34.8% | $25,752 | $73,901 | $384,400 | 309,644 |
| 3 | Hampden | 34.7% | $17,868 | $51,544 | $198,700 | 192,099 |
| 4 | Bristol | 33.9% | $22,404 | $66,027 | $290,900 | 232,089 |
| 5 | Hampshire | 32.9% | $21,180 | $64,354 | $288,700 | 63,090 |
Conversely, Berkshire County spends the lowest proportion of income on housing costs, at 28.2 percent, followed by Middlesex county at 30.5 percent, Norfolk and Plymouth County tied at 30.7 percent, and Worcester County at 31.4 percent.
Top 5 Counties with the Lowest Housing Costs as a Percentage of Income
| Rank by Homeowners’ Contribution to Housing Costs as a % of Income (Highest to Lowest) | County | Housing Costs for Homeowners with a Mortgage as a % of Income | Annual Housing Costs for Homeowners with a Mortgage | Median Income | Median Home Value | Number of Housing Units |
|---|---|---|---|---|---|---|
| 1 | Berkshire | 28.2% | $16,488 | $58,418 | $198,100 | 68,451 |
| 2 | Middlesex | 30.5% | $29,040 | $95,249 | $477,500 | 625,421 |
| 3 | Norfolk | 30.7% | $28,428 | $92,696 | $446,100 | 275,009 |
| 4 | Plymouth | 30.7% | $25,188 | $82,087 | $354,000 | 204,153 |
| 5 | Worcester | 31.4% | $21,792 | $69,295 | $269,700 | 330,808 |
ABOUT THE AUTHOR
Kevin Pryor
Kevin Pryor currently works as a data analyst and public relations associate where he takes pride in analyzing data and sharing the amazing insights it presents to various target audiences. Kevin graduated from the University of Connecticut with a bachelor’s degree in communication and has a passion for the results that can come from effective communications. While at school, he interned with Total Mortgage, Stafford Motor Speedway and UConn Community Outreach. In his free time, Kevin enjoys outdoor activities, cinema, traveling, and spending time with friends and family.
