The cost of housing in Greater Boston has become such an urgent issue for policymakers as it’s become cheaper to buy real estate rather than rent it.
Despite the significant financial burden faced by prospective homebuyers in this market, with the median single-family home price exceeding $865,000, recent data indicates that renters are experiencing a particularly acute housing crisis.
According to new figures from the U.S. Census Bureau, covering the years 2019 through 2023, renters are far more likely to be ‘cost-burdened’—spending 30 percent or more of their income on housing—than homeowners in Greater Boston.
The data, part of the American Community Survey, reveals that renters spent a higher percentage of their income on housing than homeowners in 172 out of 182 communities with populations over 1,000 households.
On average, 45.6 percent of renters in the region were cost-burdened, compared to just 26.7 percent of homeowners.
In Boston, the statistics were slightly closer to the regional average: 46 percent of renters and 2 percent of homeowners faced cost burdens.
However, the situation is more dire for many, as 24 percent of renters in Boston spent over half their income on housing, compared to 14 percent of homeowners.
These figures underscore the toll the housing crisis is taking on residents, especially as rising housing costs force many to reassess their ability to live in the region.
The housing crisis in Greater Boston is disproportionately impacting renters, with soaring costs making it increasingly unaffordable to live in the region
New Census data from 2019 to 2023 shows that 45.6% of renters are ‘cost-burdened’ (spending 30% or more of their income on housing), compared to just 26.7% of homeowners
While homeownership provides some stability, with lower monthly housing costs for many homeowners compared to renters, this option remains out of reach for many.
Consequently, many are moving out of Massachusetts in search of more affordable living, with around 35,000 residents leaving Greater Boston in 2023, according to Boston Indicators.
The disparity between renters and homeowners is stark in certain towns. In 58 of the 182 towns in the Census area, over half of renters were cost-burdened, while homeowners in only one town, Nahant, experienced a similar burden.
Some towns show even more extreme differences: in Strafford, N.H., 80 percent of renters were cost-burdened, compared to less than 20 percent of homeowners.
In Lynnfield, about 59 percent of renters spent over 30 percent of their income on housing, while only 19 percent of homeowners did.
Similarly, in Hingham, 56 percent of renters were cost-burdened, compared to 19 percent of homeowners.
The sharp rise in rents from 2019 to 2023—an increase of around 16 percent for a one-bedroom apartment, from $1,545 to $1,794, according to Apartment List—has further strained renters.
Meanwhile, wages have failed to keep pace with these rising housing costs, deepening the affordability crisis.
The latest data paints a sobering picture of how housing costs continue to reshape life in Greater Boston, putting increasing pressure on renters and contributing to a growing exodus from the area.
As the housing market remains out of reach for many, the need for policy solutions to address this crisis has never been more urgent.
Housing prices show no signs of cooling off in the coming year, with national home prices projected to rise by 3.7 percent in 2025, matching the steady rate of growth seen since 2012, according to a forecast by Realtor.com.
On average, 45.6 percent of renters in the Boston region were cost-burdened, compared to just 26.7 percent of homeowners
The real estate site predicts even sharper increases in 16 major metropolitan areas, with Florida leading the way as five cities in the Sunshine State are expected to experience double-digit price growth.
The Southwest region, encompassing states like Arizona, Colorado, and Nevada, is forecasted to see the highest surges.
Phoenix tops the list with an anticipated 13.2 percent increase, followed by Colorado Springs and Tucson, with projected growth rates of 12.7 percent and 12.4 percent, respectively.
