Massachusetts Has a Housing Affordability Crisis

Alex Navarro 23 January, 2026

As a Massachusetts resident and a real estate agent, I see the housing affordability crisis from two angles every day. I work with buyers who have solid jobs, good credit, and meaningful savings who still cannot compete. I talk with renters who are doing everything they were told to do and still cannot get ahead. Well-intentioned policy ideas gain traction while failing to address the real cause of the problem; Housing in Massachusetts is expensive because we have not built enough of it. Everything else flows from that.

Key Takeaways

Massachusetts housing is expensive primarily because the state has not built enough homes to meet demand.
Over 36 percent of Massachusetts households are cost-burdened, with renters hit hardest.
Home prices have risen far faster than incomes, squeezing even middle-income households.
Popular fixes like 401k borrowing, longer mortgages, and banning institutional buyers do not address the root problem.
Increasing housing supply is the only durable path to affordability.

What This Looks Like on the North Shore and in Greater Boston

Statewide numbers can feel abstract. On the North Shore and across Greater Boston, the affordability crisis is visible block by block. In communities like Salem, Beverly, Peabody, Gloucester, Newburyport, and throughout the Route 128 corridor, inventory remains historically low while demand stays strong. Even modest single-family homes and small condos routinely receive multiple offers, often from buyers who have already lost out several times.

For many local buyers, especially first-time buyers, the math simply does not work anymore. A household earning what would traditionally be considered a strong income still struggles to compete once prices, interest rates, taxes, and insurance are factored in. On the North Shore, buyers are not being priced out by luxury demand. They are being priced out by scarcity.

Greater Boston Rent Pressure Is Feeding the Problem

Greater Boston’s rental market directly affects ownership affordability on the North Shore. As rents continue to rise in Boston, Cambridge, and Somerville, more households look north for relatively attainable options. That demand spills into surrounding markets, increasing competition for both rentals and entry-level homes in North Shore communities.

According to Boston housing data, more than half of renters in the city are cost-burdened, which pushes households to seek alternatives in nearby regions. That pressure does not stop at the city line. It shows up in higher rents, faster turnover, and tighter vacancy rates throughout Essex County.

Source: Mass.gov, Boston.com, Census ACS (inflation-adjusted trends)

Zoning Limits Are Especially Visible Locally

Many North Shore communities are largely built out and heavily constrained by zoning that favors single-family homes on large lots. While these rules were not designed to cause a housing crisis, they significantly limit the ability to add new housing where people already want to live.

Small multi-family projects, accessory dwelling units, and mixed-use buildings near downtowns or commuter rail stations face long approval timelines or outright resistance. The result is that very little new housing gets added, even in areas with transit access and strong job proximity.

When every new housing proposal becomes a multi-year process, prices rise by default. This is why the housing shortage feels permanent. Demand continues year after year, but supply barely moves.

Source: MA Executive Office of Housing, MassBudget

Why Popular Fixes Fall Short Locally

In response to rising costs, several policy ideas have gained popularity. While they may sound helpful, they do not address the underlying shortage.

Borrowing from retirement accounts allows some buyers to bring more cash to the table, but it does not increase the number of homes for sale. When more buyers can bid more aggressively for the same limited supply, prices rise. The market adjusts, and affordability worsens for everyone else, while buyers take on long-term financial risk by draining retirement savings.

40 or 50 year mortgages lower monthly payments, but they dramatically increase the total cost of a home and allow buyers to qualify for higher prices. This pushes values upward and locks households into debt well into retirement. Lower payments do not fix affordability if purchase prices keep climbing. Not to mention that on an average priced home in MA, that would only change your monthly payment by about $100.

Banning institutional investors from single-family homes is emotionally appealing, but it is not a meaningful solution in Massachusetts. Institutional investors own a relatively small share of single-family homes in New England compared to other regions, and research consistently shows they are not the primary driver of housing shortages or price increases. Even a complete ban would not create new housing. Without increasing supply, prices remain high regardless of who is allowed to buy.

Source: Urban Institute

What Would Actually Help the North Shore and Greater Boston

If affordability is the goal, policy must focus on production. That means zoning reform that allows more multi-family and mixed-use housing, faster and more predictable permitting, preservation of existing affordable rentals, and serious investment in infrastructure that supports housing near jobs and transit. These solutions are more difficult and less headline-friendly, but they address the root cause rather than shifting the burden around.

More housing near commuter rail stations and downtown cores (no more fighting the MBTA zoning requirements!)
Duplexes, triple-deckers, and small multi-family buildings where infrastructure already exists
Accessory dwelling units that add gentle density without changing neighborhood character
Predictable and timely permitting so projects can actually get built

These changes do not require high-rise buildings or radical redevelopment. They require incremental increases in housing supply that reflect how these communities historically developed. The North Shore was built with a mix of housing types. We stopped allowing that mix, and prices soared.

I love the North Shore. I live here, work here, and help people try to put down roots here. Right now, too many families are being forced to choose between staying close to work and family or leaving Massachusetts entirely. Until we allow enough housing to be built in the communities people already depend on, affordability will remain out of reach for the very people who make these places work.

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Massachusetts Has a Housing Affordability Crisis

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