Supporting Housing Development to Strengthen Massachusetts’ Economy

Every year since 2010, Massachusetts has suffered a net loss of people in the prime working ages of 25 and forty-five. A closer look at who is leaving—and why—highlights an urgent issue that threatens our economy and demands action. Massachusetts is losing talent to other parts of the country because building housing their employees can afford is easier elsewhere.

Why are people leaving? In the 2023 Greater Boston Chamber of Commerce Youth Survey, young people made their concerns clear: an overwhelming majority said the cost of rent was a key factor in deciding whether to stay, with most pointing to the challenges of buying a home. 

The issue affects all types of workers—from high school graduates to vocational and community college students, and people returning to the workforce after a break. Whether it’s a skilled tradesperson looking for affordable housing near their job, or a family with a recent college graduate, the lack of affordable housing is pushing people away from Massachusetts. In 2023 alone, we lost 22,000 people from 25 to 44 years of age. They should be building their careers, starting businesses, buying their first homes, and raising families. But many don’t see a future for themselves in the Commonwealth. 

If we continue to lose current and future workers, businesses could follow. According to the 2024 Massachusetts Business Roundtable survey of large employers, 83% said that changes in the cost of living would affect their decision to expand in the state, and 40% said they were planning to grow their workforce outside Massachusetts or reduce their presence here.

The lack of affordable housing impacts the diverse talent pool that keeps our economy strong. Home values and rents in Greater Boston continue to skyrocket. To afford a $950,000 home—the median price in our region - a household needs to earn over $220,000 annually, while the median household income in Greater Boston is only $95,000. These numbers are even more stark when examining the median household income of Black and Latino residents, $59,000 and $53,000 respectively, further demonstrating that the median price of a home puts homeownership out of reach for so many people of color. In contrast, a household in Charlotte, NC earning $125,000 can purchase a home costing $375,000, the median price in the area.

To maintain Massachusetts’ competitiveness, we need more housing. State officials estimate that Massachusetts needs to create 222,000 new homes by 2035 to stabilize housing prices. Whether it’s duplexes, triple-deckers, starter homes, or apartment buildings, we need a variety of housing options to support our diverse workforce.

Unfortunately, outdated local policies are holding us back. While we’ve made progress with laws like the MBTA Communities Act (which 139 Massachusetts communities have now acted on), which requires many communities to allow multifamily housing, and the legalization of Accessory Dwelling Units, more needs to be done. These reforms are a start, but we must all say yes in each of our communities to allow for the homes we need.

The future of Massachusetts depends on all of us advocating for more housing where we live and work. Every day, local planning boards decide what can—and can’t—be built. Many housing proposals that could alleviate the crisis die in meetings where no one speaks up for those who need housing the most.

That’s why we’re proud to co-chair the Our Massachusetts Campaign, a coalition of leaders from business, civic, and community organizations working to create 222,000 new homes by 2035. This effort spans sectors to collectively ensure Massachusetts remains a place where people of all backgrounds and skill sets can live, work, and thrive.

To keep Massachusetts competitive, we must act now. Say yes to more homes in your community. Tell your city council, planning board or town meeting how important housing is to retaining workers and the fabric of the community. Building more housing is about building an economy that works for everyone. Let’s work together to make sure Massachusetts remains a place where we can all build a future.

Nicole Obi

President and CEO, Black Economic Council of Massachusetts

Co Chair, Our Massachusetts Coalition

Brooke Thompson

President and CEO, Associated Industries of Massachusetts (AIM)

Co Chair, Our Massachusetts Coalition