Summary of Housing Trends on Martha's Vineyard

Between 2001 and 2004, the island has continued to grow in a number of ways.
Population and household growth rate is down considerably, perhaps reflecting the high cost and limited availability of year-round housing. Average wages are up by over 4.0% annually, but wages remain 31.2% lower than the average for the state as a whole. HUD reports median income rising consistently with wages.
HUD also reports an increase in fair market rents of nearly 5.5% annually. The ability of lower income residents to pay for rent is not keeping up with the rising cost of rent. In three years, the fair market rent has become 5.0% less affordable to very low-, low- and moderate-income residents. In only two of HUD’s 18 reporting areas in the state, is it harder for the average-wage worker to afford the cost of a fair market rent than in Dukes County.

In terms of housing prices, the median home sold on Martha’s Vineyard in 2004 was $625,000. The lowest quartile of value for all homes sold was $468,600. This represents an increase of 18.4% annually in the median home value and 21.9% annually in lowest quartile value from 2001 to 2004. Both median and lowest quartile sales prices increased at a rate four and a half times faster than wages and incomes from 2001 to 2004. In 2004, the median income island household would need a down payment of over $450,000 to be able to afford the cost of a media-priced home. The median-income renter (at 80% of overall median income) would need a down payment of $304,000 to be able to afford a home at the lowest quartile of value. In both case, these numbers are up dramatically from 2001.

The 2001 study found that the imbalance between the exclusive development of high cost homes and the creation of low-paying jobs defines the problem of housing affordability on Martha’s Vineyard. At that time, the median home cost was 85% above and wages were 27.0% below the state level. In 2004, median prices were at least 84.0% higher than the state and wages 32.0% below. The basic economic imbalance has clearly not moved in a positive direction.

This is an excerpt from the Martha's Vineyard Housing Needs Update -- 2005
produced for the Island Affordable Housing Fund
by John J. Ryan — Development Cycles
July 2005