Boston Housing Report Warns of Slower Growth Ahead

Greater Boston’s housing costs remain high even as home and rent increases slow, and a sharp drop in permits points to weaker construction ahead, a new annual report on the region’s housing market finds. The Boston Foundation and Harvard’s Joint Center for Housing Studies released the report on November 10.

Fewer Housing Permits Put Greater Boston’s Affordability at Risk

Greater Boston needs more homes, but permits for new construction have fallen to a decade low, leaving the region vulnerable to another period of sluggish building, a new annual report warns. The Boston Foundation and Harvard’s Joint Center for Housing Studies released the report on November 10.

The region permitted 7,746 units in 2025, down from annual totals of 12,000 to 15,000 between 2015 and 2021. While 2025 saw a surge in completed construction as stalled pandemic-era projects moved forward, the report’s authors expect production in 2026 to be near 22,000 units and say future permits point to slower growth.

The affordability squeeze is already severe: only six of Greater Boston’s 147 municipalities had median single-family sale prices below $500,000 in fall 2026, compared with 42 a decade earlier after adjusting for inflation. A household would need about $180,000 in annual income to purchase a house in one of the more affordable communities. Almost half of renters are cost-burdened.

Voters narrowly rejected Question 7, which would have limited lot-size requirements for single-family homes on lots with public water and sewer. Supporters said it could encourage starter-home construction; the measure’s opponents disputed that smaller lots would bring prices down. Its defeat leaves the region facing the report’s central warning: without more construction, high costs remain entrenched.

Smaller Lots Were No Guarantee of Affordable Boston Homes

Greater Boston’s housing shortage is real, but the defeat of Question 7 exposed a weakness in the claim that smaller lots alone would deliver affordable homes. A new annual report from the Boston Foundation and Harvard’s Joint Center for Housing Studies, released on November 10, finds costs remain high and permits have fallen to a decade low.

The region permitted 7,746 units in 2025, compared with annual totals of 12,000 to 15,000 between 2015 and 2021. The report expects 2026 construction to be near 22,000 units, after a 2025 surge that included delayed projects from the pandemic. Permits offer a measure of what may be built next, and the report’s figures point to a weaker pipeline.

Yet Question 7’s supporters argued that reducing lot-size rules would boost starter homes, while the Massachusetts Municipal Association disputed that smaller lots would force developers to build cheaper housing. The group pointed to small-lot homes selling for $1 million or more. Voters rejected the measure by 1.2 percentage points.

The cost figures underline the challenge: only six of Greater Boston’s 147 municipalities had median single-family prices below $500,000 in fall 2026, compared with 42 a decade earlier, adjusted for inflation. A household requires about $180,000 in yearly income to purchase a house in one of the more affordable communities. The report also notes that slowing population growth may ease rental competition, but could weaken the region’s economic stability.