Worcester’s real estate prices soar amidst population growth

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Worcester’s real estate prices soar amidst population growth

Real Estate News

As the population increases, property prices rise rapidly, frustrating locals.

Worcester experienced a population growth of 10.4% from 2017 to 2021.

According to MarketWatch, Worcester ranks third nationally for cities where housing is unaffordable for locals due to high population growth.

As the city’s population grows, property prices have skyrocketed to unattainable heights for many Worcester residents, the website says.

Olivia Okpalafulaku, a Worcester-area real estate agent with Coldwell Banker, said increasing interest in Worcester is driving away many low-income families who can’t afford rising home prices.

“It’s becoming gentrified. Everyone needs to earn more than $4,000 a month to survive now,” Okpalafulaku said.

MarketWatch analyzed cities in 66 metropolitan areas and 2,730 surrounding cities. To be included in the study, cities had to have experienced significant population growth between 2017 and 2021. The population of the cities was between 500 and 25,000 in 2017. MarketWatch used census data to identify the areas with the greatest population growth.

Here are the ten cities most affected by population growth:

rank City % change in population % change in sales price to income ratio
1 North Port, Florida. 18.5% 17.9%
2 Rochester, NY 0.8% 130.0%
3 Worcester 10.4% 32.4%
4 Boise, Idaho 4.8% 64.5%
5 Charleston, SC 12.7% 8.6%
6 Orlando, Florida. 12.5% 9.4%
7 Cape Coral, Florida. 11.1% 18.2%
8th Spokane, Washington. 6.0% 48.3%
9 Palm Bay, Florida. 10.1% 17.2%
10 Buffalo, NY 6.3% 40.0%

Market observation

Three cities in Worcester-Conn. The metropolitan region is also affected by population growth.

City % population increase Increase in selling price to income ratio by %
South Windham, Connecticut 21.4% -17.2%
South Woodstock, Connecticut 19.5% 24.1%
Williamantic, Conn. 3.4% 30.8%

Market observation

With rising property prices and a growing population, it can be difficult for many to earn enough income to keep up. Three New England cities were among the top 10 where home prices exceeded income.

Here are the top 10:

rank City % change (sales price) % change (income)
1 Bridgeport, Connecticut 86.8% 11.5%
2 Rochester, NY 180.5% 24.1%
3 Boise, Idaho 98.3% 21.7%
4 McAllen, Texas 41.9% 10.2%
5 Springfield 60.4% 15.4%
6 Winston-Salem, NC 51.1% 14.0%
7 Spokane, Washington. 85.0% 24.4%
8th Syracuse, NY 46.9% 13.9%
9 Buffalo, NY 71.1% 21.2%
10 Worcester 57.2% 17.4%

Market observation

Four other New England cities were also ranked among the 66 cities most affected by migration:

rank City % change in population % change in sales price to income ratio
15 Bridgeport, Connecticut 0.6% 66.7%
19 Providence, Rhode Island 5.2% 29%
37 Springfield 0.7% 39.3%
65 Boston 0.5% -6.3%

Market observation

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