Massachusetts - The housing market in Worcester is growing at an unprecedented pace, with over $600 million in housing projects completed or under construction. In total, these projects will add over 2,300 new units for rental housing. This new construction will keep the city affordable and exciting for residents. This will make it easier for families to afford housing in Worcester.
The city currently has around 10,000 housing units. Over the last decade, the population has increased by 25,000 residents. As a result, home values have more than doubled. However, the housing supply in Worcester is not keeping up with the demand. According to housing advocates, Worcester's affordable housing stock should increase to 20% to meet the city's housing needs.
Dave Vespucci, a tenant in a Worcester duplex, had lived in the same sky-blue apartment for 22 years. He had never missed rent and had taken care of the property like it was his own. However, the landlord wanted to sell the apartment, so he was forced to move out. The landlord, Harry Kotseas, has not been available for comment.
The city has been undergoing revitalization efforts, including creating a new stadium for the Worcester Red Sox. The revitalization efforts have also led to the displacement of long-term residents. Some cities in the state are experiencing this same trend. However, this is not the only cause of worry in Worcester. A recent study found that the city is ranked 10th in the country regarding affordability, and it has the lowest number of home listings for buyers earning $50,000 per year.
The housing market is heating up in Central Massachusetts. Prices are rising in many towns, with some seeing double-digit increases. The housing stock continues to rise, despite rising mortgage rates. This trend is also true of "W towns" around Boston. While the real estate market in Greater Boston has remained stagnant for decades, Central Massachusetts is finally starting to see positive results.
While many cities are experiencing price increases, the northeast corner of the state is predicted to experience a drop by the fourth quarter of 2023. Historically, the state has been noted for its high cost of housing. The Bridgeport-Stamford-Norwalk corridor is home to the third highest median monthly rent. In response to the growing cost of living in the area, state lawmakers have proposed a rental cap.
While the housing market in Worcester is not in recovery mode, the growth in home prices is expected to continue to be healthy in the coming years. The latest forecast models predict that prices will continue to rise until May and into 2023, while there is a slight chance that prices will fall slightly in some local markets. Zillow is an industry leader and has predicted that home prices will hit record highs in many areas of the region by the middle of 2023.
