Case Study: Housing Affordability in Lexington, MA (2025)

🏡 Case Study: Housing Affordability in Lexington, MA (2025)

Lexington, Massachusetts continues to be one of the most competitive housing markets in the state. In June 2025, the median home sale price reached $2.1 million, marking a 29.2% increase year-over-year. This sharp rise reflects strong demand and limited inventory, making it a seller’s market.

📊 Key Stats:

• Median Price per SqFt: $568
• Average Days on Market: 15 days
• Sale-to-List Price Ratio: 104.4% (homes selling above asking)
• Homes Sold Over Asking: 62%

2. https://www.redfin.com/city/36128/MA/Lexington/housing-market

🛏️ Price by Bedroom Count (June 2025):

🏘️ Inventory Trends:

• Total homes for sale: 139 (down 3.5% from May)
• Most homes sell within 30 days
• Inventory for 2-bedroom homes increased by 50%, while 1-bedroom homes dropped by 33%

2. https://www.redfin.com/city/36128/MA/Lexington/housing-market

💡 What This Means for Buyers

With prices rising and homes selling quickly, affordability is a growing concern. Buyers need to act fast, often competing with multiple offers and paying above asking. Lexington’s rising prices and fast-moving inventory make it a challenging market for first-time buyers and families with moderate incomes. With homes selling above asking and limited affordable options, many buyers are looking to nearby towns or considering reverse migration—moving to less expensive areas with more space and flexibility. For first-time buyers or those with moderate incomes, Lexington may be out of reach without significant financial planning or assistance.

For more on Housing Affordability Index check out my other blog explaining it. Let’s connect…