The Greater Boston area is experiencing an unprecedented housing crisis, where, for many, it has become more economical to purchase a home than to rent. This paradox emerges against the backdrop of skyrocketing housing costs, with the median price of a single-family home exceeding $865,000.
Renters Bear the Brunt of the Crisis
Despite the financial hurdles for prospective homeowners, renters in the region face even greater challenges. Data from the U.S. Census Bureau’s American Community Survey (2019-2023) reveals that renters are disproportionately “cost-burdened,” meaning they spend 30% or more of their income on housing. In Greater Boston, 45.6% of renters fall into this category, compared to only 26.7% of homeowners.
In Boston itself, the figures align closely with the regional average: 46% of renters are cost-burdened, compared to just 22% of homeowners. Alarmingly, 24% of renters spend more than half of their income on housing, a stark contrast to 14% of homeowners.
Widening Disparities Between Renters and Homeowners
The affordability gap is even more pronounced in smaller towns. In 58 of the 182 communities surveyed, over half of renters are cost-burdened. For example:
- In Strafford, NH, 80% of renters are cost-burdened compared to less than 20% of homeowners.
- In Lynnfield, MA, 59% of renters face housing cost burdens, while only 19% of homeowners do.
- Similarly, in Hingham, 56% of renters are cost-burdened compared to 19% of homeowners.
Rising Rents and Stagnant Wages
From 2019 to 2023, average rents in the area increased by approximately 16%, with the cost of a one-bedroom apartment rising from $1,545 to $1,794, according to Apartment List. This surge in rental prices has not been matched by comparable wage growth, deepening the housing crisis for renters.
The Exodus from Greater Boston
These economic pressures have driven many residents to leave the region in search of more affordable living conditions. In 2023 alone, approximately 35,000 people moved out of Greater Boston, according to Boston Indicators.
A Call for Policy Action
The housing crisis demands urgent policy interventions to address affordability issues and stabilize the market. Without significant action, the exodus is likely to continue, further reshaping the demographic and economic landscape of Greater Boston.
Broader Market Implications
While the local housing crisis intensifies, national trends suggest little relief in sight. Realtor.com projects a 3.7% rise in home prices across the United States in 2025, with major metropolitan areas expected to experience sharper increases. For instance:
- Phoenix, AZ, anticipates a 13.2% rise.
- Colorado Springs, CO, expects a 12.7% increase.
- Tucson, AZ, forecasts a 12.4% growth.
As housing costs in Greater Boston and beyond continue to rise, renters face mounting pressures that make the dream of stable, affordable living increasingly elusive. The urgency for systemic solutions has never been greater.