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Housing Supply and Production

Existing homes and recent trends in development

The first step in creating a housing plan is understanding who the plan is for. This includes assessing who is living in Massachusetts today, what kinds of households they form, what their housing needs are, and what unique challenges face certain household segments.  Additionally, it is important to explore the demographic factors that have contributed to growth and demand over the last two decades. This section explores what is known about Massachusetts residents and households, and what it means for current and future housing needs. 

Supply and Production -- Highlights

  • Massachusetts has over 3 million homes, of which about 57% are in single family homes. The remainder is in buildings with two or more units. Nine out of ten single family homes are owner-occupied, while three quarters of multi-family units are renter-occupied.  
  • The state has a substantial inventory of rental housing reserved for low-income residents: there are approximately 140,000 affordable homes owned by private (non-profit or for-profit) landlords, and over 70,000 homes in federal- or state-supported public housing.  Together these constitute about 7% of the total housing stock.   

Housing Supply Overview 

Affordable Rental Housing 

Public Housing  
  • Housing production over recent decades hasn’t kept up with housing demand; as a result, the share of homes available for sale or rent has shrunk to only 1.6%, a historically low vacancy rate. This creates intense competition for the homes that are available.   
  • Statewide, 3.6% of homes are used as seasonal residences or for short-term rental. On Cape Cod, that figure is 36%; in the Berkshires, 13%; on Nantucket and Martha’s Vineyard, 60%. This means that a substantial share of the housing stock in these regions isn’t available to year-round residents at any income.   

Homes available for rent or sale 

Seasonal homes and short term rentals 

Who owns the rental units?  
  • The state added an average of 19,000 units per year from 2010 to 2020, but only 11,600 homes were issued building permits in 2023. People seeking to build new homes face many challenges such as restrictive zoning, elevated construction and operation costs, high expectations from investors, lack of water and wastewater infrastructure, and increasing demands for sustainability, affordability, and design. 
  • Supportive housing is affordable housing coupled with services for residents, particularly those experiencing chronic and high need homelessness with a disabling condition. It is a proven and co

Zoning in Massachusetts 

Financial Feasibility of New Development 

Water and Wastewater  

Housing Supply and Production - Table of Contents

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