As young people look forward to buying their first home, Massachusetts might be low on their list of places to live. The Bay State’s median listing price for a home in 2025 is roughly $300,000 higher than the rest of the United States. Massachusetts’ median is about $797,000 and the rest of the United States’ is $439,450.
Citi reported that 67% of Americans believe that homeownership is unrealistic for young people in 2025, and they might be right. According to the New York Post, it would take a salary of $210,000 per year to be able to afford the median listing price for a home in Massachusetts.
Unattainable apartments
The New York Post reported that the number of colleges and universities in the state of Massachusetts is creating a large rise in the cost of apartment living. Due to the number of students renting in and near college towns such as: Harvard, MIT, Amherst College and Williams College, rent is rising. Massachusetts median rent is $2,914 for a two bedroom apartment, putting it at the highest rent in the nation. Ludlow, Massachusetts currently holds the lowest rent in the state at $2,559.
According to NBC Boston, from 2000 to 2025, median home prices in Massachusetts have risen 73%. The population in 2000 was 6.3 million, whereas today it is 7.1 million, jumping almost an entire million. Massachusetts Gov. Maura Healey said on Boston Public Radio, “Our economic future and our livelihood, our growth as a state depends on our ability to build more homes.”
Homeownership: an all time low
First-time home buyers are dwindling as the housing market shrinks and prices go up, according to the National Association of Realtors.
“First-time buyers face high home prices, high mortgage interest rates and limited inventory, making them a decade older with significantly higher incomes than previous generations of buyers. Meanwhile, current homeowners can more easily make housing trades using built-up housing equity for cash purchases or large down payments on dream homes,” explained the NAR’s chief economist and vice president of research, Jessica Lautz in their article regarding first time home-buyers.
According to NBC News, a listed 1 in 5 homes was affordable for a homeowner with an income of $75,000 per year, whereas the median income for someone aged 20-24 is $41,184.
Where does Massachusetts go from here?
Hope is not lost for the Massachusetts housing market. According to Moss Home Solutions, the median home price is expected to decrease by 0.2% by the end of 2025. Once home prices are stabilized, home and apartment builders might feel comfortable starting new projects, eventually lowering the overall price of housing by creating more supply.
Massachusetts Gov. Healey announced a plan to build 222,000 total apartment buildings and homes, a number that has been calculated as the amount of residences needed to solve the housing crisis in the state. Healey signed the Affordable Homes Act in 2024, which includes $2 billion of funding for public housing and construction.
Whether buying a home in Massachusetts or any other part of the United States, being a first-time buyer is a stressful position. Ensuring financial stability, satisfaction with the location and patience will greatly help the buying process, and might lead to a forever home.
