A supply and demand challenge
Housing in Massachusetts has become too expensive. For decades, the production of new homes hasn’t kept pace with demand. Today, the number of homes for rent or sale is at an all-time low.
Renters and buyers are competing with each other for a limited supply, so landlords and sellers can command staggeringly high prices. As a result, rents and home prices have risen faster than people’s incomes, and a growing share of households across all income levels are spending an unsustainable amount of incomes on housing. Many others have seen those prices simply rise out of their reach. There aren’t nearly enough affordable homes to meet the need.
The ripple effects are everywhere. Young people unable to afford that first apartment are living at home longer. Families and individuals trying to buy their first home are looking elsewhere. Older residents looking to find affordable housing are on waitlists. And those who were just getting by paying their rent or mortgage are finding themselves homeless.
The housing crisis threatens what makes Massachusetts great. Left unchecked, it will drive workers and employers out of the state, make economic inequality even worse, and undermine the livability of our communities.
A bold solution in The Affordable Homes Act
Gov. Maura Healey believes Massachusetts can build more homes and build them faster. The Affordable Homes Act, filed in October 2023, is the centerpiece of this strategy.
The Affordable Homes Act is a big, bold comprehensive package of spending and policy actions aimed at striking at the root causes of housing unaffordability while making progress on the state’s climate goals.
The Affordable Homes Act includes $4 billion in capital spending authorizations and 28 substantive policy changes, three executive orders and two targeted tax credits. The bill seeks to increase the amount of money available for affordable housing, reduces barriers to the production and preservation of housing, and gives communities the tools to develop more housing where they need it.
- Read the press release
- For a brief overview, read the Affordable Homes Act Fact Sheet
- Download the full text of the bill
- Read about EOHLC's analysis of the bill's potential impact
Real results for Massachusetts
As part of the governor’s groundbreaking housing strategy, and in combination with record investment in the Low-Income Tax Credit and Housing Development Incentive Program tax credits signed into law by the governor in 2023, the Affordable Homes Act would leverage $2.3 billion of federal funding and could unlock $1.1 billion of new local revenue and nearly $9 billion of private sector investment. All told, these investments would fund or enable the creation of more than 40,000 homes that otherwise would not be built, including more than 22,000 new homes for low-income households and more than 12,000 new homes for middle-income households. In addition, the Housing Affordability Act will preserve, rehabilitate or make resilience improvements to 12,000 homes for low-income households, support more than 11,000 moderate-income households, and fund accessibility improvements for approximately 4,500 homes.
The University of Massachusetts Donahue Institute estimates that all this activity could create 30,000 new jobs, produce roughly $800 million in state tax revenue, and generate about $25 billion of total economic activity over five years.
“Together, we’re going to make our state a place where people can afford to move to and stay to build their future.” - Gov. Maura Healey
Q&A
How can I support this initiative?
Read up on the Affordable Homes Act and contact your legislative representatives to voice your support.
What needs to happen for this to go into effect?
The governor has filed the Affordable Homes Act with the state Legislature. A Housing Committee heard more than 10 hours of testimony on the legislation on Jan. 18, 2024. The Legislature is responsible for passing legislation that is then sent to the governor to sign into law.
This interactive map shows which communities Secretary Augustus has visited since the filing of the Affordable Homes Act in October 2023.
Contact for The Affordable Homes Act: Smart housing, livable communities
Online
Phone
Kevin Connor, press secretary