News
Boston-area housing affordability crisis tied to single-family home shortage
A shortage of moderately priced single-family homes is a fundamental cause of the homeownership crisis in the Boston area. Regulations imposed since the 1960s have constricted the supply of starter homes.
Many factors have contributed to the high cost of housing, including changes in housing markets during the COVID-19 pandemic, inflation, high interest rates, rising insurance premiums, increased construction costs, affluent people moving into certain areas, and stagnant incomes. Despite these factors, a fundamental cause of the homeownership crisis is the shortage of modestly priced single-family homes. Since the late 1960s, suburban towns in metropolitan Boston have imposed regulations, including large minimum lot sizes, stringent land-use policies, and complicated permitting procedures. These policies contrast with the first half of the 20th century, when builders produced housing for a broad range of the market. The current scarcity of moderate-cost homes has led many to ask what happened to the starter home.
Key Facts
- A shortage of modestly priced single-family homes is a fundamental cause of the homeownership crisis.
- Since the 1960s, suburban Boston towns have imposed restrictive regulations.
- These regulations include large minimum lot sizes and stringent land-use policies.
- Complicated and lengthy permitting procedures also limit housing supply.
- From workers' cottages to bungalows, builders produced housing for a broad market during the first half of the 20th century.
- Many Americans desire to own a home, preferably with a yard.
- The inability to achieve this dream is a source of bitterness for many millennials and Gen-Zers.
- President Trump has proposed ways to lower mortgage rates and prevent institutional investors from buying houses.
Primary Source
Research Sources
- The Boston Globe — To restore the American dream, Greater Boston needs to build more single-family homes - The Boston Globe