to view the Affordable Housing Plan - Town of North Andover

Rent and Local Wages
• There is a disconnect between the salaries of people who work in North Andover as
teachers, firefighters, police officers and paramedics and how much rent and mortgages cost.
For example, the starting salary for a teacher in town is $33,082 11 , using 30% of the monthly
income; there is only $827 available for housing. The median salary for a Police Officer is
$46,482 12 , using 30% of the monthly income; there is only $1,162 available for housing.
Affordable housing rental opportunities are critical for North Andover residents who wish to live
and work in the community, for elderly residents who want to downsize and/or are on a limited
income and for young adults who want to stay in North Andover but cannot afford to buy a house.
The Need for Affordable Home Ownership
As mentioned earlier in the plan, the
affordability gap has gotten considerably
bigger in the past ten years. The median
single-family home sales price went from
$255,000 in 1996 to $550,000 in 2005 and
the area median income only increased
from $64,500 to $75,750. To afford the
median single-family home sales price and
not pay more than 30% of your income
for housing costs, an annual income of at
least $140,000 would be necessary. To
afford the median condominium sales
Photo: Mary C. McCrann, December 2005
price, and not pay more than 30% of your
income for housing costs, an annual income of at least $59,000 is necessary.
Of the total 451 home sales in 2005, only 25% (111 homes) were sold at under $300,000 (this
includes single family homes and condos). Of the 111 homes sold, 8 of them were single-family
homes and the remaining 103 were condos. There were no single family homes that sold for under
$200,000 and only 2 sold for under the price of $250,000. In order for someone to purchase a single
family home or condominium at $300,000, with a 30 year fixed loan at 6.5% interest and no down
payment, they are looking to pay approximately $1,900 a month. If you were earning at least the
median household income $72,728 13 that would still not be quite enough to afford a home at this
price even if it were available, you would need to make $76,000 or more. In North Andover,
approximately 42% of households are earning 80% or LESS of the median household income
($58,182).
11 Number from the Eagle Tribune Newspaper
12 Number from www.salary.com, North Andover
13 Number from US Census 2000 data, median household income.
North Andover Affordable Housing Plan
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