The thriving Boston housing market continues to impact residents.
The Greater Boston housing market has hit a record median price for single-family homes at $1,003,250 in June, reflecting a 2.4% increase from May. Advocates express concern over affordability, as families face increasing homeownership challenges amid rising prices and interest rates. The state median also climbed, with limited new construction and a reduction in middle-income households shaping the market dynamics. An approved Housing Accelerator Fund aims to assist with housing supply improvements.
Boston, MA — The Greater Boston housing market has reached a significant milestone as the median price for a single-family home climbed to an all-time high of $1,003,250 in June 2025, reflecting a 2.4% increase from May 2025’s median price of $980,000. Compared to the same period last year, this represents a 4.5% rise from June 2024’s median price of $960,000.
The Greater Boston area, which includes 64 cities and towns as designated by the Greater Boston Association of Realtors (GBAR), continues to experience challenges in making homeownership accessible to average residents. Housing advocates have voiced concerns that the skyrocketing prices are increasingly pushing homeownership out of reach for many families.
As home prices soar, the overall housing costs in Massachusetts have also escalated. In June 2025, the state reported a median price for single-family homes at $687,500, marking a 3.1% increase compared to June 2024. This upward trend in prices comes at a time when the number of residential listings in Greater Boston has increased by nearly 25%, suggesting heightened activity in the housing market.
For potential buyers, securing a home in Greater Boston means preparing for significant financial commitments. A family would typically need a down payment of approximately $200,000 to avoid private mortgage insurance, which adds another layer of expense to home purchases. Furthermore, research indicates that a couple with two children would need an annual income of about $320,000 to “live comfortably” in Boston, highlighting the financial strains on families amidst these high housing costs.
The dynamics of the market are further complicated by the reality that the number of middle-income households in Boston has decreased significantly. From 1990 to 2018, there was a notable decline of 15,000 middle-income households, which has influenced demand and access to reasonable housing options.
In recent years, the production of new housing in Boston has also faced challenges, with reports indicating that construction levels for 2023 and 2024 are poised to be the weakest since 2011. While some housing policy initiatives from the Wu administration aim to require more low-income housing, reports suggest these policies may inadvertently hinder new developments due to increased regulatory burdens.
In an effort to address the housing crisis, a $110 million Housing Accelerator Fund has been approved to provide grants for various housing programs aimed at easing financial constraints for builders and enhancing housing supply.
Despite these efforts, the trend towards a seller’s market continues, characterized by rising prices and ongoing demand. The average home value in Boston has surged from approximately $500,000 in 2018 to around $804,000 today, reflecting the robust competition among buyers in the current market.
In addition to these economic factors, the recent rise in interest rates for 30-year fixed mortgages, which now sit at around 6.75%, has further influenced buyer behavior, leading to a recalibration of what families can afford in the existing climate of rising home prices. The growing availability of condominiums has provided some equilibrium in pricing, with median prices stabilizing around $725,000, though slight declines have also been noted in this segment.
Looking forward, Massachusetts is enacting new home inspection laws aimed at influencing future real estate transactions, which may also affect the housing landscape in Greater Boston as policies evolve to address the pressing need for affordable housing while balancing market demands.
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