‘Nowhere to hide:’ Housing costs keep climbing in all corners of New England

When McLaughlin, 42, began looking to buy in Somerville, surrounding communities weren't any cheaper. But he got lucky when a relatively reasonably priced condo became available in neighboring Arlington. McLaughlin knew he had to act or potentially be forced to move further away from Somerville.

He has no doubt it was the right decision. He just wishes he didn't have to make it. McLaughlin has spent his working life at nonprofits that serve Somerville teens and the poor. Didn't that commitment to his city mean anything?

"I had a few people joke to me … when we moved out, they're like, 'Oh, you guys betrayed us.' And I was like, 'Somerville betrayed me,'" McLaughlin said. "The amount of love and involvement we have, and it's just, like, it's not a priority."

The question is, what can be done in Somerville - and around New England - to make housing more affordable so community cores are preserved, local employers have enough workers, and people can stay in their hometowns?

Can anything?

Housing costs have long been rising faster than incomes in the Boston area. But Willen said the story changed after the pandemic began, when remote work freed people to start buying homes away from job centers. Prices then soared around New England, not just in Greater Boston.

Since March 2020, home values in every New England state are up by more than the national average (43.7%). New Hampshire has seen the steepest increase at 64.2% (to $478,955).

It's a similar story with rents, according to apartmentlist.com. In November, rents rose year-over-year in places like Hartford, Worcester, and Providence. Boston has the eighth-highest median rent in the nation at $2,344.

In October, Boston Fed President Susan M. Collins told business leaders in Vermont that housing challenges are "the main thing I hear about" traveling around the region. Hospital officials say they can't find workers. Residents lament the exodus of young adults. Executives say new hires can't find housing.

"The data show there are more challenges in New England," Collins said.

Efforts to make housing more affordable often focus on increasing supply. For instance, zoning changes can allow denser construction and more multifamily units, or they can reduce minimum lot sizes, so parcels fit more single-family homes. The Boston Fed recently hosted an event that explored whether "accessory dwelling units" (like a basement apartment or backyard cottage) could help address the housing crisis.