The Coastal Wealth Exception: Why Cohasset Breaks All the Income-to-Asset Rules
Cohasset ranks #20 in median household income ($187K) but #16 in home values ($1.38M)—a 7.4:1 income-to-asset ratio double the conventional 4:1 standard. This reveals asset-driven wealth, not income-driven. Like Nantucket ($3M homes, $119K income), Cohasset operates in a different economy: accumulated capital, inherited wealth, and external equity deployment. The South Shore's coastal market is where earned wealth meets stored wealth.
Cohasset uniquely straddles two wealth economies: $187,060 median household income (#20, lowest in top 20 wealthy towns) yet $1.38M typical home value (#16) with 52.7% five-year appreciation. The 7.4:1 income-to-asset ratio proves buyers deploy accumulated capital, not convert annual W-2 income. Compare Nantucket: $2.97M homes despite $119K median income (25:1 ratio). Both are asset-storage markets for external wealth. Cohasset offers South Shore beaches, yacht clubs, and maritime heritage at 54% below Nantucket's cost. For families with accumulated capital (inheritance, equity, business exits) prioritizing coastal lifestyle over income optimization, Cohasset is the mainland alternative to island markets.
The Coastal Exception: Asset Wealth vs Income Wealth
📊The Data: Decoupled Income and Assets
| Location | Median Income | Home Value | Ratio | Market Type |
|---|---|---|---|---|
Cohasset | $187,060 | $1,378,881 | 7.4:1 | Hybrid Asset/Income |
Nantucket | $119,750 | $2,974,796 | 25:1 | Pure Asset Storage |
Dover (comparison) | $250,000+ | $1,728,168 | ~7:1 | Income-Driven |
Lexington (comparison) | $219,402 | $1,540,873 | ~7:1 | Income-Driven |
🏖️Cohasset: Where South Shore Meets Stored Wealth
Cohasset's 8,500 residents access South Shore coastal living: beaches (Sandy Beach, Black Rock Beach), harbor views, yacht clubs, and New England maritime character. Schools rank #18-20 statewide (8.5-9.0/10). The 52.7% five-year appreciation proves coastal demand + pandemic migration drove values beyond what local income supports. Commutes are 35-40 minutes via Route 3A/Route 3—manageable but not optimal.
The character is coastal New England: yacht clubs, summer sailboat racing, multigenerational family compounds. The appeal is maritime heritage and beach access unavailable in income-driven suburbs. At $1.38M, Cohasset costs 37% less than Weston while offering coastal lifestyle. The trade-off is accepting asset-driven market dynamics—cash buyers and external wealth dominate.
🏝️The Nantucket Parallel: Pure Asset Storage
Nantucket represents the extreme: $2.97M typical home values despite $119,750 median household income (25:1 ratio). This is pure asset storage—global capital, second homes, inherited wealth. Local income is irrelevant. Buyers are deploying accumulated wealth for seasonal lifestyle, family legacy, appreciation potential. Cohasset operates similarly but less extremely. The 7.4:1 ratio indicates partial asset-driven dynamics. Some buyers are active professionals earning $180K-$250K and stretching. Others deploy accumulated capital. Cohasset is the hybrid: earned wealth meets stored wealth.
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🎯Who Buys in Cohasset?
The Cohasset Buyer Profile
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📋Conclusion: Know Your Wealth Source
Cohasset reveals the fundamental divide in Massachusetts real estate: income-driven markets vs asset-driven markets. If building wealth via annual W-2 earnings, target income-driven suburbs (Dover, Lexington, Winchester) where $200K-$250K household income supports $1.4M-$1.7M homes at conventional 7:1 ratios. If deploying accumulated capital (inheritance, equity, exits), coastal markets like Cohasset enable lifestyle optimization. The 7.4:1 ratio signals: this is not a W-2 conversion market. It is where external wealth seeks maritime heritage. Know which buyer you are. Choose accordingly.
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