Report: Only 1 in 7 Greater Boston Renters Can Afford Starter Homes

A new report shows that only about one in seven renter households in Greater Boston can afford a starter home in 2025. That number is down from roughly one in three four years earlier as housing costs rise.

The annual housing report, conducted by the Boston Foundation, found that Massachusetts created slightly fewer than 98,000 housing units between April 2020 and July 2025, with about 71,000 in Greater Boston. According to the report, this development marks a “meaningful increase” and “would put Massachusetts within striking distance” of attaining the state's goal of building 222,000 new units between 2025 and 2035.

“But permits, which signal future housing construction, are way down,” the report stated. “New permits as of July 2025 are running 44% below levels for the same period in 2021.”

According to the report, building permits were at just over 14,000 in 2024. That's down from a high of nearly 20,000 in 2021, according to the report. In Greater Boston, fewer than 9,000 units were permitted in 2024, down from approximately 15,000 in 2021.

Regardless of these construction gains, Boston housing remains unaffordable in the period following the pandemic. 

In 2025, home prices and rents have leveled off but remain at unaffordable high levels, the data shows.

According to the Boston Herald, a household this year would need to earn more than $162,000 to afford a $4,200 monthly payment on a starter home. 

“You can see that we've cut by almost half the number of renter households who can afford an entry-level home in just four years,” said Luc Schuster, executive director of the research arm of the Boston Foundation, in a statement shared with the Boston Herald. “Also, look as one example, for Black households in 2025, we estimate just a little bit over 8,000 Black families that are renter households in Greater Boston can currently afford an entry-level home. So, a whole lot of dire consequences of these trends in recent years.”

Lt. Gov. Kim Driscoll highlighted the state's efforts, citing the administration's work on a "comprehensive housing plan." It includes the $5.2 billion invested in the Affordable Homes Act of 2024 and the MBTA Communities Law, noting 177 towns have taken steps — often through zoning changes.