Learn more about the housing market in Massachusetts

Every state is unique when it comes to the real estate market. That’s why it’s critical to understand the market you live or operate in. Whether you’re renting, buying, or selling, it will impact many aspects of your life.  

In this article, we’ll cover everything you need to know about the Massachusetts housing market in 2026.

Key Takeaways

1. Massachusetts remains a high-demand, low-supply market, with home prices continuing to rise into 2026.
2. Inventory growth is limited, though state policies—such as the Affordable Homes Act—may gradually increase housing supply.
3. Mortgage rates and inflation continue to shape affordability, keeping pressure on both buyers and renters.
4. A market crash is unlikely; strong demand and economic stability indicate continued, moderate growth through 2026.

Massachusetts Housing Market Overview 

Known for clam chowder, U.S. history, and several of the top universities in the country, Massachusetts is a notable destination for both tourists and homeowners. The state’s diverse economy rests on a mix of healthcare, education, and technology, plus tourism at the state’s many historical sites. 

From the housing market standpoint, Massachusetts boasts general economic stability, steady growth, and modest appreciation throughout the year. Its market is robust and active, generating consistent demand throughout the years. 

From a housing standpoint, Massachusetts continues to show economic resilience in 2025, with steady price growth and sustained buyer demand. According to the Massachusetts Association of Realtors (MAR), the median sales price for single-family homes rose 2.3% year-over-year, and condo prices increased 2.8% as of October 2025, which shows ongoing statewide competition and limited supply. Closed sales for single-family homes were also up 5.6% from 2024, reinforcing the strength of buyer activity even as inventory remains tight

Massachusetts’s governor Maura Healey has prioritized expanding housing supply, highlighted by the Affordable Homes Act, signed in late 2024. The law was made to accelerate housing production, increase multifamily development, and require municipalities to allow accessory dwelling units by right. According to 2025 updates from the Massachusetts Executive Office of Housing and Livable Communities, cities and towns began adopting new ADU and zoning measures throughout 2025. Whether these reforms meaningfully increase inventory will be an important trend to watch going into 2026.

Massachusetts Housing Market Trends 

To understand the Massachusetts real estate market, it’s important to keep up with trends. Let’s look at some key ones in Massachusetts: 

Note: These statistics are based on Redfin’s monthly housing data from October 2025 and Zillow's data from October 2025. 

Median Home Price 

The median sale price for homes in Massachusetts is $645,115, according to Zillow's monthly housing data. This represents a 1.2% increase in home prices compared to last year. Massachusetts is one of the U.S.’s most expensive markets, with median prices in Boston ($835,000) drastically higher than the state average. 

Number of Homes Sold in October 2025 

5,689 homes were sold in Massachusetts in October of 2025. This is a 1.9% increase from October last year, according to the Redfin data set. This metric gives us a good picture of the current sales volume in Massachusetts.  

However, keep in mind that this number might be not be as inflated compared to other months since nationally speaking, sales usually peak during the spring and summer months and slow in the winter. In fact, the National Association of Realtors (NAR) predicts that in February and March alone, sales activity increases by as much as 34% and prices by 3%. 

Median Days on Market (DOM) 

Days on market (DOM) is a measure of the average length of time a home remains listed on the market before being put under contract. A lower DOM signals a highly competitive seller’s market with more pressure on buyers to make higher offers and remove contingencies. A higher DOM signals a buyer's market as sales are slower and sellers have less leverage. 

The current median days on market (DOM) in Massachusetts is 17 days. This means homes in Massachusetts sell in less than a month on average, indicating a competitive seller’s market. 

New Supply Statistics 

Massachusetts continues to face limited housing supply. The state issued 14,338 residential building permits in 2024, down sharply from nearly 20,000 permits in 2021, and 2025 reports show permitting remains over 40% below peak levels. With production still lagging demand, new inventory is unlikely to relieve pressure in 2026.

Property Tax Rate 

The average property tax rate in Massachusetts is 1.14%, according to Rocket Mortgage. This places Massachusetts’s average property tax rate as the 18th highest in the U.S. However, keep in mind that property taxes vary widely depending on the specific county of Massachusetts and the value of the home. 

Foreclosure Rate in Q1 of 2025

In the first quarter of 2025, Massachusetts reported 1,370 foreclosure filings, or roughly 1 filing per 2,200 housing units, according to ATTOM’s March 2025 Foreclosure Market Report. This represents an 8.8% decline from the previous quarter and a 30% decrease year-over-year, placing Massachusetts among the states with improving and relatively moderate foreclosure activity.

Hottest Local Markets in Massachusetts 

Massachusetts has several resilient markets ideal for investors. 

1. Boston

Boston is a robust metro area, attracting business leaders, entrepreneurs, students, and other young professionals with a desire for urban living. As mentioned, the current average home price in Boston is nearly $835,000, while the median DOM for a Boston home is 31 days. 

2. Worcester

Worcester is more affordable compared to Boston, but the city still has high demand for properties and substantial appreciation growth. The median home sale price in Worcester as of April 2024 is $433,000, and homes sell in an average of just 22 days. Redfin ranks Worcester as a ‘Very Competitive’ market for this reason.

3. Springfield

Springfield is even more affordable for first-time homeowners. As a smaller market, Springfield features less expensive homes, but still benefits from modern metropolitan amenities. The average home sale price here is $318,000, but competition here is just as steep with homes selling in an average of 26 days as of October 2025.

Economic Factors Impacting the Massachusetts Housing Market 

A holistic view of Massachusetts's housing market requires a basic understanding of the main economic drivers affecting the market. Let’s look at a few critical ones below: 

Mortgage Rates 

High mortgage rates are a continuing challenge for would-be homeowners in the U.S. Massachusetts’s average rates for 30-year mortgages in November of 2025 are only slightly lower than the national average at 5.990%. Higher interest rates deter borrowing and discourage those who already own homes from putting their homes on the market. Many homeowners report feeling “locked in” to their current homes, as it is unlikely they will secure a mortgage rate as low as their current one on their next property. Prospective buyers in Massachusetts should monitor mortgage rates in the coming months for a better understanding of how they impact the housing market. 

Inflation and Cost of Living 

Mortgage rates are tied to inflation, another massive contributing factor to the affordability of housing and the state of housing markets in general. Inflation has increased the cost of living for many across the U.S., including in Massachusetts. This means fewer people can truly afford to limit housing costs to less than 30% of their monthly income. Early 2026 economic reports show inflation easing but still elevated compared to pre-pandemic levels, meaning many Massachusetts residents are still struggling to keep housing costs within affordable limits.

Population Changes and Demographics 

Job growth, unemployment, and migration patterns can each influence the housing market in a given area. Between March and May of this year, 5,000 people looked to move out of Massachusetts rather than stay within, likely in search of more affordable prices. In-migration can increase prices, while out-migration tends to ease strain on inventory. 

Massachusetts Housing Market Predictions 

The Massachusetts housing market is expected to maintain steady growth into 2026, though affordability will remain a major challenge for many buyers. Some markets in Massachusetts are seeing more affordability as new construction resumes after the pandemic and more homes become available, but overall supply is still below demand. Buyers and investors alike will continue to wait for rate drops to facilitate a more welcoming market environment for new buyers. 

Likelihood of Massachusetts Housing Market Crash  

Experts do not currently see any signs of a market crash in Massachusetts. Demand for homes remains high in the state, and mortgage rates are forecasted to stabilize this year within the state’s robust economy, a sign of a strong and healthy market. 

Forecast for The U.S. Housing Market 

Now that we’ve looked at the housing market in Massachusetts, let’s zoom out a little bit. What about the U.S. housing market? What do you need to keep an eye on in the coming years? 

The United States' current median existing-home sale price is around $415,200 per the National Association of Realtors. The inventory, though, remains low. A balanced market typically has a 5-to-6-month supply, but the current figure is 3 months, keeping conditions constrained.

We’re currently in a seller’s market with buyers looking at continued rising house prices—although they are rising at a slower pace compared to previous years.. The same trend can be seen with renters. Housing continues to appreciate, in general.

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research, National Association of Realtors, believes the housing market will appreciate 15 to 25% over the next five years. He thinks that the seller’s market will continue because housing inventory will remain low. In 2026, he predicts that existing home sales will rise an additional 13%. Yun expects mortgage rates to stabilize at the lower end of the current 6-7% range through 2025 and 2026 as the Federal Reserve continues gradual rate cuts. There's an anticipation of a more balanced market in the coming years, with moderate price growth and a greater amount of Americans re-entering the market.

Hybrid work also impacts the housing market. This shift in work culture means suburbia will continue to grow. States like Texas, the Carolinas, Tennessee, and Florida should see continual growth.

The number of single-family homes built decreased over the past couple years while the number of multi-family homes increased due to lower prices and a demand for affordable housing. Year-to-date single-family housing starts were down about 7.1% in 2025, whereas starts for buildings with five or more units were up roughly 14.5% Higher mortgage rates and inflation (affecting price of materials) were the main causes.

Lower income households continue to struggle in the current housing market. This trend appears likely to continue into the foreseeable future. According to the National Association of Home Builders, approximately 74.9% of U.S. households were unable to afford a newly built median-priced home in 2025. Without enhanced supply or helpful subsidies, the outlook is that many Americans will still wrestle with housing affordability in the years to come.

Massachusetts Rental Market 

The rental and buying market are obviously closely linked. When home prices fall, landlords are more likely to buy properties to rent out. Home prices and rental prices are correlated as well because a hot market means prices rise.  

Rents were more unaffordable than ever in 2021 and 2022. In 2022, 22.4 million households paying rent said it was unaffordable, which is the highest that figure has ever been, according to a January report from the Joint Center for Housing Studies at Harvard University. The study found that half of all renters in the United States spent over 30% of their income on rent and utilities.  

The markets cooled in 2024 as new units came online and demand leveled off, but by 2025–2026 the core issue remains unchanged. Rent increases continue to outpace income gains, keeping affordability strained for many Massachusetts renters.

Moreover, high interest rates are keeping borrowing and transaction activity down. Over half the banks surveyed by the Federal Reserve reported that demand for multifamily loans decreased year-over-year. 

The pandemic caused a housing disparity that isn’t going away anytime soon. Unaffordable housing is a serious issue across America. Whether high rents or low income is the main cause doesn’t change the fact that this problem is widespread.  

This short summary leads directly into Massachusetts’s current rental market, with key trends below from Zillow. 

Massachusetts’s Rental Market Key Trends 

• Median rent: $2,944 

• Month-over-month rent change: +$44

• Year-over-year rent change: -$151

• Available rentals: 23,287

Conclusion 

The Massachusetts housing market in 2025 shows steady growth and tight inventory, and these conditions will remain important as we move into 2026. Whether you're looking to purchase a home soon or sell your property in Massachusetts, the macro- and micro- economic trends outlined above will affect your decision-making. Market dynamics like changes in home prices, inventory levels, and interest rates will continue to be critical for stakeholders in Massachusetts real estate. 

FAQs

Is the Massachusetts housing market expected to cool down in 2026?

Not significantly. While price growth may slow, demand remains strong and inventory remains tight, meaning the market will likely stay competitive into 2026.

Will new housing policies increase supply next year?

Possibly. The Affordable Homes Act and expanding ADU/zoning reforms adopted through 2025 may help increase inventory, but meaningful supply relief will take time.

Are mortgage rates expected to drop in 2026?

Economists expect rates to stabilize in the 5–6% range as the Federal Reserve continues gradual cuts. Even small rate declines could bring more buyers back into the market.

Is Massachusetts at risk of a housing market crash?

No. The state continues to show economic strength, steady buyer demand, and moderate price appreciation—conditions that do not indicate a crash.

How competitive is the rental market in Massachusetts?

Still very competitive. Despite slight rent decreases year-over-year, affordability remains strained because rent growth continues to outpace income gains for many renters.