(Bloomberg) -- Massachusetts needs to build at least 222,000 more housing units over the next decade to address a housing affordability crisis and help stem a loss of workers to other states, according to Governor Maura Healey’s administration.
Like much of the country, production of homes in Massachusetts has failed to keep up with demand, a situation that’s exacerbated by high interest rates that deter homeowners from selling and an already-high cost of living in the state.
Median home prices in Massachusetts have climbed 73% since 2000, while household income has risen only 4% over the same period, after adjusting for inflation, according to a report Thursday from the Executive Office of Housing and Livable Communities, which cites data from Zillow Group Inc.
Healey is proposing to ramp up housing production through zoning changes and regulatory reviews that can increase construction costs. Additionally, she’s looking to allow more building on state land and encouraging the development of accessory dwelling units — also called granny flats or in-law units.
“Our administration is not kicking the can down the road when it comes to addressing the high housing costs that are holding too many of our residents and our businesses back,” Healey said in a statement on Thursday.
Last year, she signed the Affordable Homes Act, which includes about $2 billion of funding for public housing and other reforms meant to spur construction. The final bill didn’t include a controversial initial provision that would have allowed cities to impose a transfer fee of 0.5% to 2% on property sales exceeding $1 million to help fund affordable housing projects.
The proposed addition of 220,000 units is equivalent to about 7% of the state’s current housing supply, according to the report.
The housing crisis has become an early flash point in Boston’s mayoral election this year. Josh Kraft, the son of billionaire New England Patriots owner Robert Kraft, this week officially launched his campaign to challenge current Mayor Michelle Wu in the November election.
Kraft has proposed giving tax breaks to landlords who agree to cap rent increases. Wu has also pushed for rent control and the construction of more affordable housing.
Boston and its surrounding neighborhoods are the third most expensive metropolitan area in the country, with a median single family home price of $950,000, the governor’s housing report said. Beyond the rise in home prices, Massachusetts is second most expensive state for two-bedroom apartment rentals, according to data from the National Low Income Housing Coalition.
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