Spring House Hunt

A report says you won’t be able to afford a home in Worcester in 5 years. What gives?

The lack of housing inventory has caused “substantial competition” in Worcester, which is frustrating buyers, said Cherie Benoit, president of the Realtor Association of Central Massachusetts.

A photo of Downtown Worcester
Real estate marketplace Redfin reported that the median home price in Worcester increased 10.7% year over year to $425,000 in February. Jackie Ricciardi/Boston Globe

By Victor Stefanescu

2 minutes to read

FinanceBuzz has named Worcester one of 15 cities in the United States “You Won’t Be Able to Afford in 5 Years.”

Looking to head farther south? Providence made the list, too:

Worcester
Buffalo
Madison, Wis.
Bakersfield, Calif.
Providence
Columbus, Ohio
Roswell, Ga.
Charlotte, N.C.
Atlanta
Orlando
Prescott, Ariz.
Philadelphia
Folsom, Calif.
Las Vegas
Knoxville, Tenn.

The Worcester market benefited from the rise in remote work and higher prices in Boston, making it more competitive, Chris Lewis, head of research at the personal finance website, said in an email to Boston.com.

Michael Barbera grew up in Worcester and has sold homes there for 22 years — after getting his real estate license in high school.

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Now director of the Realtor Association of Central Massachusetts, Barbera said he watched as a viable downtown emerged, and he boasted about the city’s restaurant scene, rebuilt public schools, and job market growth.

Prospective home buyers in places like Boston look toward Worcester for price relief, said Barbera, principal broker at BA Property & Lifestyle Advisor. But now, prices are increasing there faster than in Boston.

Affordability’s a problem in Worcester, Barbera said, but a prospective buyer would have a hard time finding a city in New England with similar amenities and lower housing costs.  

“I understand looking at historical prices, how it might be unappealing to see prices increase at a higher rate than other areas,” Barbera said, “but I still think that the value is really what the ultimate consideration is.”

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High mortgage rates traditionally suppresses buyer demand, Barbera said, which even occurred during the recent spike. But unlike during previous hikes, prices aren’t dropping, as buyers are still competing for homes amid low inventory, he said.

There have been 191 single-family homes brought to market year-to-date in Worcester, Barbera said, citing MLS PIN data, compared with 301 at the same time in 2022.

“If we had a home that may have appealed to 20 buyers when interest rates were in the threes,” Barbera said, “maybe it only appeals to five buyers now. But we still got five buyers that are vying for that same opportunity. So, that’s what pushes prices up in the face of high interest rates.”

Real estate marketplace Redfin reported that median home prices in Worcester increased 10.7% year over year to $425,000 in February. In Boston, the median home price, $735,000, swelled by 1.4% over the course of a year.

Graph of the median sale price in Worcester, MA

Homes in Worcester lingered on the market for a median of 27 days in February, compared with 28 in February 2023, Redfin reported. In Boston, the figure dropped from a median of 56 days to 42, it reported. 

And the number of home sales grew 9.2% year over year in February in Worcester, while the figure dropped by 4.9% in Boston, according to Redfin.

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The lack of housing inventory has caused “substantial competition” in Worcester, which is frustrating buyers, Cherie Benoit, president of the Realtor Association of Central Massachusetts, said in an email to Boston.com. But she said it’s a great time to sell a home, as a seller will likely receive multiple offers and a high price.

In May 2023, ApartmentAdvisor ranked the city as the most competitive rental market in the United States. Barbera said rents have risen dramatically in Worcester, which doesn’t help people find affordable alternatives to buying.

But, he said, the city still holds a lot of value for prospective homeowners. 

“I still think Worcester has a lot of runway to continue to grow and evolve and improve,” Barbera said. 

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