While it seems to some as if Massachusetts is building homes at a fast clip these days, the rate of production is still well below that of past decades. The total number of units grew by 190,300 from 2010 to 2020, an increase of 6.8%. This was largely a continuation of production rates in the 2000s, when the state added 186,300 units. It is far less than the historical rates. From 1950 to 1990, Massachusetts’ housing stock grew its housing stock by 12% to 21% in each decade. This was also the period that produced many units that are still affordable to working families today.
More recent and detailed data on housing production can be gleaned from building permit data reported to the US Census. (However, not all municipalities report regularly, so this data undercounts total production.) From 2013 through 2023, municipalities reported issuing permits for 148,900 units. More than half of those new homes (53%) were in buildings with five or more units. About 40% of those units were single family homes, and only 6% of new units were in two-, three- or four-unit buildings.
About 62% of new homes were in the Metro Boston region, far more than any other region. The Southeast, Old Colony, and Central Mass regions each constitute about 6% of the total units reported, and all other regions make up less than 4% of the total.
In 2023, the reported construction value of the 11,600 units that were permitted was nearly $3.9 billion, or approximately $336,000 per unit. The highest valuation per unit was on the Cape ($606,000 per unit) and Islands ($780,000 per unit on Martha’s Vineyard and $1.6 million on Nantucket). Value per unit was below $300,000 in some regions surrounding Metro Boston (Northern Middlesex, Old Colony, Southeastern MA, Central MA) and in the Pioneer Valley.