Real Estate

Boston ranked among the toughest cities for Gen Z home buyers

High median sales prices and Gen Z’s median income of nearly $40,000 make the city unfriendly for young buyers, according to a new report.

Only two cities in the Northeast were more difficult landing spots for Gen Z home buyers: Pittsburgh and Newark. Erin Clark/Globe Staff

By Victor Stefanescu

February 6, 2024

For prospective buyers under the age of 25, Boston’s not looking too warm.

A study real estate marketplace Point2 released on Jan. 18 reported that it’s harder for prospective Gen Z home shoppers to buy a property in Boston than in all but two major Northeast cities. The report ranked Boston No. 88 out of 102 major cities.

“Moving out and getting your own place has never been easy,” the report reads. “However, this is painfully true for America’s youngest, who have already faced a pandemic, crippling inflation, historically high mortgage rates, and an overall turbulent economy.”

High median sales prices and Gen Z’s median income of nearly $40,000 make market conditions unfriendly for young buyers in Boston, according to Sabina Boboc, a communications strategist at Point2.

The study evaluated homeownership feasibility based on seven factors: inventory, unemployment rate, homeownership rate, days on market, median sales price difference (2022 versus 2023), home price-to-income ratio, and share of homes sold above the listing price.

Only two Northeast cities are more difficult landing spots for young buyers: Pittsburgh, where home prices are increasing more rapidly than in Boston, according to the study, and Newark, which has a higher Gen Z unemployment rate than the Massachusetts capital, according to the study.

The study reported that market conditions are warmer for young buyers in the South and Midwest, while seven of the eight hardest cities for prospective Gen Z home buyers are in California.

It's harder to buy in Boston than in every borough of New York City, where the proportion of median sales prices to income is more manageable, the study reported.

The Boston Globe reported in April 2023 that buying a home is a “monumental task” for prospective homeowners in their 20s, citing ballooning prices and wages that can’t keep up. Qualifying first-time home buyers in Boston can receive down payment assistance.