02142, Cambridge, MA

The 2142 zip code of Cambridge, MA has a population of about 112,000 people. The median household income in this zip code is about $130,000, and the median home value is about $1.2 million. Home equity in this zip code is quite high relative to other zip codes in Massachusetts. In fact, according to Zillow’s 2018 Home Value Index report, the home equity index for the 2142 zip code is 5.5%, which is higher than any other Massachusetts zip code except for the 02118 zip code (which has a home equity index of 7%).

There are several reasons why home equity in the 2142 zip code of Cambridge is high relative to other Massachusetts ZIP codes. First, Cambridge has a high concentration of wealthy households (as measured by median household income), which means that there are more affluent homeowners who can afford to borrow against their homes’ values. Second, Cambridge has a low rate of foreclosure activity (relative to other Massachusetts ZIP codes), which means that there are fewer homes that are available for sale at a discount (which would reduce home equity). Finally, Cambridge residents have been relatively resistant to selling their homes during market downturns (relative to other Massachusetts ZIP codes), which has kept prices elevated even when economic conditions have been weak elsewhere in the state.

Despite these factors, it's important not to overstate how much influence housing prices have on overall economic conditions in a given area. While they do play an important role in determining local wealth levels and housing affordability, they aren't the only factor that determines whether or not someone can afford to buy or rent a house – job stability and income growth also play an important role.