What does this measure?
The median home value divided by the median household income, adjusted for inflation.
Why is this important?
The ratio provides a rough estimate of the affordability of homes in a community. A ratio less than 2 or 3 is generally considered affordable.
How is our county doing?
In 2020-24, homes were not generally very affordable in Essex County, with an affordability ratio of 6.1. This was higher than the state (5.4) and national ratio (4.1). Housing for homeowners has become less affordable over time, with an increase in Essex County's ratio of 5.1 in 2010-14 to 6.1 in 2020-24.
The least affordable municipalities in Essex County were Rockport (7.8), Gloucester (7.2), and Lawrence (6.9). The most affordable were Groveland and Georgetown (both 4.3), and Topsfield, Methuen, and Middleton (all 4.4) - all still above the levels considered affordable. Notably, Lawrence, which had the lowest median home value in Essex County in 2020-24, was not particularly affordable, with a ratio of 6.9. This likely reflects the City's relatively low median household income in 2020-24, which was the lowest in the County.
How do we compare to similar counties?
In 2020-24, Essex County was less affordable than all comparison counties with Middlesex, MA and Westchester, NY both at 5.6, and Lake, IL at 3.1. Like Essex, Middlesex, MA became less affordable from 2010-14 to 2020-24, while Lake County, IL and Westchester, NY become slightly more affordable over that same time period.
Notes about the data
Multiyear figures are from the Census Bureau's American Community Survey. The bureau combined five years of responses to the survey to provide estimates for smaller geographic areas and increase the precision of its estimates. The survey provides data on characteristics of the population that used to be collected only during the decennial census.