Only 1 in 7 renter households in Boston-area can afford ‘starter home,’ report finds

Only one in seven renter households in the Greater Boston area can afford an entry level home as affordability issues continue even while construction increases according to the Greater Boston Housing Account Card circulated Wednesday This year s assessment records highlights particular essential differences among housing construction permits and prices stated Luc Schuster executive director of the research arm of the Boston Foundation While new statistics from the U S Census Bureau shows a notable uptick in new home completions in up-to-date years the increase has not significantly helped home affordability and a decline in the number of new housing permits statewide suggests any construction uptick could be short-lived the executive director added The annual housing review conducted by the Boston Foundation revealed that Massachusetts created just under housing units between April and July with about in Greater Boston The pace marks a meaningful increase and would put Massachusetts within striking distance of meeting the state s goal of building new units between and the summary stated But permits which signal future housing construction are way down the statement states New permits as of July are running percent below levels for the same period in Building permits were at just over in down from the peak of nearly in according to the analysis In Greater Boston under units were permitted in below the about permitted in It s a real sort of pairing of a good news bad news story mentioned Schuster Good news is that we ve built major new housing in the last limited years making a bit of a dent in our housing shortage but there are real warning signs around whether that will continue into the future Despite the modest increase in housing construction Greater Boston s housing affordability emergency has only worsened since the pandemic the description shows In home prices and rents have broadly leveled off but remain at unaffordable high levels the figures shows Whereas in a household earning about could buy a home at the low end of the arena with a monthly payment a household this year would need to earn over to afford the monthly payment on the starter homes 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 announced Schuster Also look as one example for Black households in we estimate just a little bit over Black families that are renter households in Greater Boston can at the moment afford an entry level home So a whole lot of dire consequences of these trends in current years The share of renter households able to afford an entry level home fell from in to in the assessment shows The sobering reality of this combination of price increases and higher mortgage rates Schuster commented is just one in seven households in Greater Boston are able to afford a starter home in the region The statistics show just how much work we have to do if we are to expand opportunities and unfreeze the realm Schuster revealed Lt Gov Kim Driscoll spoke on the document s finding Wednesday citing the administration s work on a comprehensive housing plan the billion invested in the Affordable Homes Act passed in and the MBTA Communities Law requiring housing around residents transportation Related Articles Mixed interest -year mortgage proposal gets cool reception Young homebuyers lose more ground in housing sphere as states struggle to help It is a situation Mayors share how grappling with housing has shaped their jobs Foreclosures are up Here s why experts aren t worried Surreal estate How hauntings affect home sales The description also examined the MBTA Communities Law highlighting the tactics cities and towns have taken to meet it specific through zoning changes rather than construction There are lots of intractable challenges within leadership mentioned Driscoll Building more housing isn t one of them It really isn t It should not be as hard as it is And I think for us to solve this we ve got to work together and that means local executives state functionaries certainly are in a position to drive agenda folks who are building housing those who are emerging housing There is a path forward