Developing New Models of Affordable Homeownership

As part of Boston’s 2025 Housing Strategy, Mayor Wu wants to make Boston a great big city for families, where they can live, learn, work, and grow. According to the American Community Survey, the median income of Boston households where the head of household is 25-44 years (which comprise roughly 44% of the city’s population) is estimated at $125,196 per year. After maximizing the City of Boston’s homebuyer resources, a household with this income could reasonably afford a home in the range of $500,000 - $600,000. Currently, much of Boston’s existing market rate housing stock suitable for family living is not affordable to a majority of the city’s families. Additionally, construction costs have escalated in recent years due factors such as but not limited to price increases of materials and labor, restrictive zoning regulations, and long project review and approval processes. As a result, development of new housing has slowed and, when completed, is over the attainable purchase price for many Boston families.

The Housing Innovation Lab recently hosted a Starter Home Concept and Design Sprint with local builders, developers, architects, and lenders to brainstorm ideas of how to create Boston’s starter home for middle income families.

Case Study

The Housing Innovation Lab conducted research and compiled a case study report in July 2023 detailing strategies that neighboring cities and other high-cost cities use to promote affordable homeownership. The City of Boston is taking information learned from this study to inform new ideas, policies, and best practices to help make Boston a more affordable place for all.

We’re partnering with developers, financers, and service providers to explore new models of affordable homeownership that would provide tenants with the opportunity to build equity in their homes.