Massachusetts single-family home prices were at the national average in 1980, but since then have increased more than any other state. The current median single family home price in 2024 was $610,000—a 10% increase from the prior year. Prospective homebuyers would need an annual household income of roughly $162,000 to afford a home. This is even more pronounced in high employment areas, notably Greater Boston, which is the third most expensive metropolitan area in the country with the median single family home price being $950,000.
Housing affordability in Massachusetts is not just an issue for prospective homebuyers as data shows rental prices are among the highest in the country. Recent findings from the National Low Income Housing Coalition show Massachusetts is 2nd most expensive state for a 2-bedroom apartment. This is more pronounced in regions such as Central Massachusetts and the Greater Boston areas which rank as the 3rd and 12th most competitive rental markets in the Country.
Sale prices and rents have risen drastically in recent years/decades. According to Zillow, the median price of a home increased by 73% in real dollar terms from 2000 – 2024, while the inflation adjusted median household income grew by only 4% over that same time period. One key driver is a substantial increase in very high value sales and high -cost rentals, and an evaporation of homes affordable to low- and moderate -income households. The price of a “lower tier” home (in the 5th to 35th percentile of home prices) rose by 93% over the past 25 years.
A 2021 analysis conducted by MAPC for MassHousing analyzed 409,000 single family and condominium home sale transactions that took place across Massachusetts from 2010 – 2019. That analysis estimated that only 24% of sales would have been considered attainable to low-moderate income households (defined as 70% of the statewide AMI.) In most Greater Boston municipalities, fewer than 20% of home sales were attainable, and in dozens of suburbs, fewer than 5% of sales were attainable. A higher share of home sales were attainable in Southeastern, Central, and Western Massachusetts. Notably, Gateway Cities tend to already have a higher share of attainable housing sales compared to the rest of the state. With the exception of Quincy, Malden, Salem, and Peabody, more than 20% of sales in each Gateway City were attainable. For most Gateway Cities outside of Greater Boston, the attainable share is higher than 50%, and over 75% in Springfield and Holyoke.
Affordable rentals are also scarce in Massachusetts. A four-person household with two full-time workers earning $20 an hour would have income right at the Very Low-Income limit for the Boston region ($81,600), enough to rent an apartment for $2,050 without being cost burdened. Approximately 56% of all rentals in Massachusetts currently rent below that price, and it’s only 36% of existing rentals in Suffolk County. Those figures may overstate the share of available homes affordable to a Very Low-Income household, since they include people who have lived in their homes for a long time and may be paying rent below what would be asked when the apartment next becomes available. According to Comprehensive Housing Affordability Strategy data from HUD, the number of vacant units available for rent at prices affordable to VLI households declined to 13,800 in 2017 – 2021, down from 25,300 in 2007 – 2011.
Affordability problems vary across the state. Western MA has units that would be “affordable” in Metro Boston but are out of reach for many workers due to lower wages. According to 2023 American Community Survey data, 36 percent of renter households in Western MA have incomes lower than $25k compared to 26 percent statewide. Rates of cost burden vary across Western MA, notably renter cost burden in Hampden County, home to the cities of Springfield and Holyoke, was above the statewide average at 53.9 percent.