Builders Patch | HousingCount: Massachusetts affordable housing data and latest news
Massachusetts
Summary
Massachusetts state is facing challenges to housing affordability. For every 100 low-income renter households, there are 65 units available that are affordable to them. The median household income in the state is $50,644 whereas the median rent in the state is $1,269. Currently, the state is short over 104,657 low-income housing units, meaning rental units that are affordable to households earning ≤60% of AMI.
37.6% share of renter households
42.2% share of low-income households
46.6% share of rent-burdened households
Renter population data
Renters vs homeowners
| Household Type | Households | % Share |
|---|---|---|
| Renter households | 1,020,041 | 37.6% |
| Homeowner households | 1,694,407 | 62.4% |
| Total households | 2,714,448 | 100.0% |
Low-income renter households
| Income Group | Households | % Share |
|---|---|---|
| Extremely low-income (≤30% AMI) | 182,131 | 17.9% |
| Very low-income (31-50% AMI) | 114,386 | 11.2% |
| Low-income (51-80% AMI) | 133,838 | 13.1% |
| All low-income households (<80% AMI) | 430,355 | 42.2% |
Rent-burdened households
| Burden Level | Households | % Share |
|---|---|---|
| Moderately rent-burdened | 237,649 | 23.3% |
| 30.0–34.9% | 93,345 | 9.2% |
| 35.0–39.9% | 62,612 | 6.1% |
| 40.0-49.9% | 81,692 | 8.0% |
| Severely rent-burdened | 237,822 | 23.3% |
| ≥50.0% | 237,822 | 23.3% |
| All rent-burdened households | 475,471 | 46.6% |
Affordable housing shortage
Rent vs median household income
| Year | Median Household Income | Increase |
|---|---|---|
| 2010 | $34,772 | - |
| 2021 | $50,644 | 45.6% |
Median rent
| Year | Median Rent | Increase |
|---|---|---|
| 2010 | $873 | - |
| 2021 | $1,269 | 45.4% |
Affordable housing stock
| Metric | Units |
|---|---|
| Supply (current stock) | 191,860 |
| Demand (total units needed) | 296,517 |
| Shortage | 104,657 |
| Supply/demand ratio | 64.7% |
Finance institutions
Mass Housing
MassHousing
1 Beacon Street
Boston, MA 02108-3110
LIST OF loan programs
- Workforce Housing Initiative
- CommonWealth Builder Program
- New Construction & Adaptive Reuse
- Bridge Loans
- Affordable Housing Trust Fund
- Community Scale Housing Initiative
QAP document (Qualified Allocation Plan)
The QAP is a document that states, and a few local agencies, must develop in order to distribute federal Low Income Housing Tax Credits (LIHTCs), which can be awarded only to a building that fits the QAP’s priorities and criteria. Each QAP must spell out a housing finance agency’s (HFA’s) priorities and specify the criteria it will use to select projects competing for tax credits. The priorities must be appropriate to local conditions.
Housing news
How Fed Rate Cuts Impact the Housing Market
The Federal Reserve’s recent rate cuts will influence the housing market, but the effects won't be immediate. Although lower rates make borrowing more affordable, the ongoing housing shortage and existing conditions in the market remain tough obstacles.
Key Takeaways:
- Lower Mortgage Rates: Fed rate cuts have already reduced the average 30-year mortgage rate, which dropped from a peak of 7.79% in late 2023 to around 6.2%. This could ease the burden for homebuyers and those refinancing.
- Home Sales: As rates decline, more homeowners might be encouraged to sell, which could help alleviate some of the housing market’s stagnation. However, a full recovery of the resale market is expected to be gradual.
- Ongoing Supply Issues: Despite lower rates, housing supply shortages will persist, especially in high-demand areas. Supply constraints, driven by zoning restrictions and labor/material shortages, remain a barrier to affordability.
While the Fed’s actions are a positive step toward stabilizing the housing market, broader structural challenges—particularly the lack of new housing supply—will continue to affect the market.
The homebuying affordability gap is widening across the country, creating 'an impossible market'
The worsening housing affordability crisis in the U.S. has broken several records, the recent being the national affordability gap nearing a 10-year high. Only 63% of counties are now affordable for median-income households, compared to 94% in 2019. The median home price exceeds what the average household can afford by nearly $70,000.