Here's how much you need to earn to buy a house, or rent, in each Cape Cod town

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(This story was updated to accurately reflect the most current information.)

When published this story contained an inaccurate median household income for Orleans. The correct number is $98,798.

Cape Cod residents are in a housing logjam. Aspiring homeowners who grew up on Cape Cod can’t afford a house — or are faced with a fixer-upper without the spare money for a renovation — and older residents are stuck in houses they’ve outgrown.

The median household income in all 15 Cape Cod towns falls short of the six-figure amount needed to comfortably purchase a median-priced home here, according to data culled by the Cape Cod Commission published earlier this year.

In Chatham — one of the more expensive towns on the Cape — households need to earn $303,803 annually to affordably own a house, stretching beyond the town’s median income of $86,674.

The median home sales price in 2023 was $1,050,000, according to the commission.

And in Dennis, where the median sales price is $575,000, prospective homeowners need to make $167,949 a year to afford to buy a house. The median household income in town is $88,183.

Local housing advocates say that this mismatch has placed homeownership on Cape Cod out of reach for many residents.

“I don’t have another word for it besides heartbreaking,” said Housing Assistance Corporation CEO Alisa Magnotta. “Individuals, who have lived here for their whole life, born, raised, went to school here, really people who have been invested in the heart and soul of our communities for their entire life and sometimes for generations, have to leave.”

Affordably purchase means a household spends 30% or less on housing.

More on rental data

Median gross rents are more attainable on the Cape, according to the commission data, which typically comes from American Community Survey data.

For instance, an income of $70,040 is needed to afford to rent in Barnstable, where the median income is $97,348 and the median gross rent is $1,751.

But the availability of year-round rental housing is extremely limited.

“We see people stay in units probably longer. There’s no mobility,” said Magnotta. “In other markets, there’s a vacancy rate where there’s other housing units coming online, you see people upgrade or size up, going up bedrooms … we don’t have that kind of fluidity in our market.”

Plus, rental data is difficult to come by, said commission spokeswoman Sarah Colvin.

“The median rent data reflects what people who are currently in rentals are reporting they are paying for rent. It is for anyone who reports they are renting and is not parsed out by housing type,” said Colvin in an email to the Times. “Because of the way data is collected, ACS captures people who are most likely in year-round or long-term rentals, and who may have been there for a long time.”

American Community Survey data can have a larger margin of error, particularly for smaller towns, Colvin said. As an example, the median gross rent in Provincetown is $1,306 with a margin of error of $212.

In Chatham, the median gross rent is $1,180 with a margin of error of $383.

First-time home buyers, downsizers especially hit hard

Katie Clancy, Sales Vice President at William Raveis Real Estate, said first-time home buyers are suffering in this housing market, unable to compete against investors armed with cash, experience, and the ability to waive mortgage and inspection contingencies.

If they are not lucky enough to inherit a house, this group will buy something “in terrible shape and now they’ve got to spend money fixing it up,” she said, or leaving the state altogether in search of something affordable.

“(First-time home buyers) are putting off buying for a long time, they’re putting off families because they don’t have stable housing or housing that they want,” said Clancy.

Meanwhile, older people looking to downsize are also priced out, often staying in a house that’s too big and too overwhelming for them to take care of, said Clancy.

“We’re seeing older folks get to a point where it’s just not tenable anymore for them to stay in their houses,” said Clancy. “Maybe they’ve had an accident or an illness, they now have no choices and they’re being moved into assisted living or government-funded housing because they don’t have a choice anymore. They weren’t able to age in place.”

Cape Cod wages lower than rest of state

Wages on Cape Cod are also lower compared to the rest of the state.

The median household income for Massachusetts is $101,341, according to data from the U.S. Census Bureau, ahead of Eastham ($72,683), Yarmouth ($81,985), and Harwich ($87,948).

Cape Cod’s economy is fueled by tourism which means many jobs here are service-based and pay less than engineers or other white-collar workers, said Magnotta.

“We’ve always been a place where the wealthy or affluent come to vacation and when they come to vacation, it’s typically service-based employees and that workforce waiting on them,” said Magnotta.

She noted the Cape has a large population that is retired and may be on a fixed income, which can also bring down the median income.

Still a seller’s market, but buyers getting more leverage

It’s still a seller’s market, said Clancy, but lately she’s been seeing that buyers are gaining more wiggle room.

“During the pandemic, it was just a bloodbath and there was just buyers competing and hearts being broken left and right,” said Clancy. “Now, there’s still competition. It’s still a seller’s market … but every metric is moving towards the middle.”

Days on the market is going up, which can give those eyeing the property more leverage. Prices are still rising but the pace is beginning to slow and there’s more negotiating going on where buyers are able to haggle a bit more.

“Anecdotally, I am seeing fewer buyers waiving various contingencies,” said Clancy. “They’ve got a little bit more dignity to the process, a little more safety too.”

Here’s a look at how much a household needs to earn in each Cape Cod town in order to comfortably own or rent, according to the Cape Cod Commission.

Barnstable: What income do I need to buy or rent?

Median household income: $97,348

Median house sales price: $650,000

Median gross rent: $1,751

Income needed to affordably own: $192,075

Income needed to affordably rent: $70,040

Bourne: What income do I need to buy or rent?

Median household income: $95,349

Median house sales price: $649,900

Median gross rent: $1,409

Income needed to affordably own: $197,687

Income needed to affordably rent: $56,360

Brewster: What income do I need to buy or rent?

Median household income: $94,798

Median house sales price: $699,000

Median gross rent: $1,386

Income needed to affordably own: $209,798

Income needed to affordably rent: $55,440

Chatham: What income do I need to buy or rent?

Median household income: $86,674

Median house sales price: 1,050,000

Median gross rent: $1,180

Income needed to affordably own: $303,803

Income needed to affordably rent: $47,200

Dennis: What income do I need to buy or rent?

Median household income: $88,183

Median house sales price: $575,000

Median gross rent: $1,499

Income needed to affordably own: $167,949

Income needed to affordably rent: $59,960

Eastham: What income do I need to buy or rent?

Median household income: $72,683

Median house sales price: $750,000

Median gross rent: $1,692

Income needed to affordably own: $225,585

Income needed to affordably rent: $67,680

Falmouth: What income do I need to buy or rent?

Median household income: $92,862

Median house sales price: $750,000

Median gross rent: $1,406

Income needed to affordably own: $223,760

Income needed to affordably rent: $56,240

Harwich: What income do I need to buy or rent?

Median household income: $87,948

Median house sales price: $742,500

Median gross rent: $1,830

Income needed to affordably own: $220,924

Income needed to affordably rent: $73,200

Mashpee: What income do I need to buy or rent?

Median household income: $95,852

Median house sales price: $650,000

Median gross rent: $1,808

Income needed to affordably own: $193,944

Income needed to affordably rent: $72,320

Orleans: What income do I need to buy or rent?

Median household income: $98,798

Median house sales price: $900,000

Median gross rent: $1,181

Income needed to affordably own: $268,934

Income needed to affordably rent: $47,240

Provincetown: What income do I need to buy or rent?

Median household income: $104,500

Median house sales price: $982,134

Median gross rent: $1,306

Income needed to affordably own: $283,821

Income needed to affordably rent: $52,240

Sandwich: What income do I need to buy or rent?

Median household income: $87,948

Median house sales price: $742,500

Median gross rent: $1,830

Income needed to affordably own: $220,924

Income needed to affordably rent: $69,000

Truro: What income do I need to buy or rent?

Median household income: $94,637

Median house sales price: $830,000

Median gross rent: $1,131

Income needed to affordably own: $240,588

Income needed to affordably rent: $45,240

Wellfleet: What income do I need to buy or rent?

Median household income: $114,074

Median house sales price: $913,375

Median gross rent: $1,200

Income needed to affordably own: $267,885

Income needed to affordably rent: $48,000

Yarmouth: What income do I need to buy or rent?

Median household income: $81,985

Median house sales price: $560,000

Median gross rent: $1,642

Income needed to affordably own: $169,151

Income needed to affordably rent: $65,680

Zane Razzaq writes about housing and real estate. Reach her at zrazzaq@capecodonline.com. Follow her on X @zanerazz.

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This article originally appeared on Cape Cod Times: Rents more affordable on Cape than buying a house: What salary needed?