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Introducing a New Chamber Report on the State of Housing in MA

Housing affordability and availability are among the most pressing challenges facing Massachusetts today—and they impact far more than where people live.

The Greater Boston Chamber of Commerce’s new report, Supercharging Housing Production: Policies & Practices that Promote Housing Development, Attract Businesses, & Retain Talent, examines how housing supply influences the Commonwealth’s ability to grow its economy, retain talent, and remain competitive in a changing national landscape.

Drawing on data across Massachusetts and leading competitor states, this report illustrates the key housing trends, benchmarks, and policy insights needed to better understand where we stand and what comes next.
Explore the full report Read the Executive Summary

Questions? Reach out.

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Emily Baer

Director of Research, Policy

Greater Boston Chamber of Commerce

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Key Findings

Housing Costs are Among the Highest

Massachusetts residents face significantly higher housing costs than both the national average and many competitor states. Median home sale prices exceed $665,000, and Boston rents average around $3,000 per month.

Housing Supply Lags Behind Competitors

Massachusetts is not producing housing at the pace needed to keep up with demand. With just 170 housing units permitted per 100,000 residents, the Commonwealth falls well below the national average of 417 per year.

Massachusetts is Losing Residents

Housing constraints are contributing to population loss. The state lost more than 33,000 residents from 2024-2025, with many leaving for lower-cost states. Over half of those leaving are between the ages of 26 and 44. As housing becomes less accessible, Massachusetts risks losing a key segment of its workforce.

Why This Report Matters

Housing is not just a local issue; it is a statewide economic priority.

Access to housing influences whether young residents stay, whether businesses can attract talent, and whether communities can grow sustainably over time.

Employers across the Commonwealth consistently cite housing costs as a barrier to hiring and retention. At the same time, population loss, particularly among working-age residents, is reshaping the state’s workforce and economic outlook.

This housing report was created to connect these trends, providing a clearer picture of how housing affects Massachusetts’ long-term competitiveness and what policy considerations may help address the gap.

The Main Challenges

Massachusetts faces a significant housing shortage—and the gap continues to widen.

  • The state needs 222,000 new homes over the next decade to meet demand
  • That equates to more than 22,000 homes per year

Yet housing production has steadily declined over time:

  • ~30,000 units/year permitted (1960–1979)
  • Less than 16,000 units/year (2000–2019)
  • Just 12,096 units permitted in 2025

This growing mismatch between supply and demand is driving higher costs and fewer options for residents.

What It Means for Massachusetts 

Massachusetts remains a leader in innovation, education, and industry, but housing supply is a growing constraint on the state’s future.

Compared to competitor states, Massachusetts residents face:

  • Higher housing costs
  • Fewer available units
  • Slower housing production

At the same time, other states are actively implementing policies to expand housing supply, streamline development, and improve affordability—giving them a competitive edge in attracting residents and businesses.

Impact of Housing Supply on Housing Costs Interactive Dashboard

This interactive analysis shows how housing supply shapes home prices and rents, reinforcing a central challenge in Greater Boston: demand continues to outpace available housing.

Areas with limited supply see the fastest price growth, while regions adding housing more quickly tend to experience slower cost increases.

The data highlights a clear pattern:

  • Less housing relative to population → higher prices and rent burdens
  • More supply → greater price stability and improved affordability

As housing production has lagged behind demand, this imbalance has driven rising costs—underscoring the importance of increasing supply to improve affordability and market balance.

Explore our interactive dashboard