Massachusetts is Failing in Affordability and Homebuilding: Can Gov. Healey Turn It Around?

Massachusetts may boast world-class universities and a booming innovation economy, but when it comes to housing, the state earns one of the lowest marks in the nation.

It received a flat F on the Realtor.com® State-by-State Housing Report Card, an annual review through the Let America Build campaign, which highlights the states that are tackling affordability and new construction—and those that are falling behind.

For the Bay State, the message is clear: High prices, complex zoning, and a lack of new homes are putting the dream of ownership out of reach for too many residents.

But this is a national problem. In fact, President Donald Trump recently put pressure on homebuilders to increase construction nationwide, given the issues with construction in the country. In a post on his Truth Social platform in early October, he accused major builders of hoarding lots to prop up prices—likening them to OPEC, which restricts oil output to maintain high prices.

“They’re my friends ... but now, they can get Financing, and they have to start building Homes. They’re sitting on 2 Million empty lots, A RECORD,” Trump wrote. He urged Fannie Mae and Freddie Mac to intervene and “get Big Homebuilders going” to “restore the American Dream.” 

But is there more Massachusetts' own government can do to fix the problem?

The numbers behind the F

Massachusetts finished near the bottom of the national rankings with a total score of 12.6, ranking 50th out of 51 states and DC. The state’s median list price of $781,758 is among the highest in the country, while median household income sits at $96,584—a mismatch that leaves even middle-income earners struggling to buy.

New construction has not provided relief. Massachusetts accounted for only 1% of the nation’s building permits in 2024, despite representing more than 2% of the U.S. population. That results in a permit-to-population ratio of just 0.47, one of the weakest in the country.

Even when new homes do get built, they come at a steep cost—the new-construction premium stands at 42.8%, meaning new builds are priced nearly half as high as existing homes.

A regional reality check

The latest Realtor.com New Construction Insights report paints a stark contrast between Massachusetts and the nation’s more affordable regions.

Nationally, the median list price for a newly built home was $450,797, barely rising 0.7% from the previous quarter. Meanwhile, resale prices increased 2.4%, shrinking the national new-construction premium to a record-low 7.8%. That affordability gap is helping buyers in the South and Midwest find options within reach, but the same cannot be said of states in the Northeast.

Yet make no mistake, this is a national problem, regardless of grade.

“America is short more than 4.7 million homes, and every new home built helps close that gap while fueling local economies," says Shannon McGahn, executive vice president and chief advocacy officer at the National Association of Realtors®.

"NAR research shows that the U.S. has faced a persistent housing shortage for more than a decade, driving up prices and limiting options for buyers. Expanding housing supply creates jobs, supports small businesses, and affords families the opportunity to build generational wealth.”

Gov. Healey’s push for new housing

Given the struggles in Massachusetts, it's understandable why Gov. Maura Healey has made expanding housing supply a core priority of her administration. In June, her team identified 450 acres of state-owned surplus land that can be redeveloped into roughly 3,500 new homes across 20 communities. The first phase of the plan includes sites in Bedford, Brockton, Salem, and Lowell, with more parcels slated for auction later this year.

In 2024, Healey signed The Affordable Homes Act, which authorized a record $5 billion for housing and created nearly 50 initiatives designed to speed up housing production.

“Massachusetts is rolling back decades of restrictive zoning and speeding up the construction of homes to lower housing costs for residents,” Noah R. Bombard, director of communications with the Executive Office of Housing & Livable Communities, told Realtor.com.

“Through the Affordable Homes Act signed by Gov. Maura Healey, we legalized accessory dwelling units by right statewide, unlocked surplus state land to build housing, and created a Seasonal Communities designation so places with big swings in seasonal employment can add homes. We’re also implementing landmark zoning reform with the MBTA Communities Law that requires 177 MBTA-served communities to zone for multifamily housing.”

Bombard explained that, thus far, the law has paved the way for 5,000 homes to be “in the pipeline in new zoning districts.

“We’re building more homes near public transportation, and helping workers, families, and seniors stay in the communities they love.”