The booming city where it’s cheaper to buy a house than rent as real estate market spirals out of control

The cost of housing in Greater Boston has become such a pressing issue for policymakers because it has become cheaper to buy rather than rent real estate.

Despite the significant financial burden facing potential homebuyers in this market, with the median price for single-family homes exceeding $865,000, recent data indicates that renters are experiencing a particularly acute housing crisis.

According to new figures from the US Census Bureau, covering the years 2019 through 2023, renters are much more likely to be “cost-burdened” – spending 30 percent or more of their income on housing – than homeowners in Greater Boston.

The data, part of the American community researchshows that in 172 of 182 communities with more than 1,000 households, renters spent a higher percentage of their income on housing than homeowners.

On average, 45.6 percent of renters in the region were affected by costs, compared to just 26.7 percent of homeowners.

In Boston, the statistics were slightly closer to the regional average, with 46 percent of renters and 2 percent of homeowners experiencing cost burdens.

For many, however, the situation is even more dire, as 24 percent of Boston renters spend more than half of their income on housing, compared to 14 percent of homeowners.

These numbers underscore the toll the housing crisis is taking on residents, especially as rising housing costs force many to reassess their ability to live in the region.

New census data from 2019 to 2023 shows that 45.6% of renters are ‘cost burdened’ (spending 30% or more of their income on housing), compared to just 26.7% of homeowners

While homeownership offers some stability, with lower monthly housing costs for many homeowners compared to renters, this option remains out of reach for many.

As a result, many are moving away from Massachusetts in search of a more affordable life, with approximately 35,000 residents expected to leave Greater Boston by 2023, according to Boston Indicators.

In certain cities, the gap between renters and homeowners is large. In 58 of the 182 cities in the Census area, more than half of renters were cost-burdened, while homeowners in only one city, Nahant, experienced a similar burden.

Some cities show even more extreme disparities: In Strafford, NH, 80 percent of renters were cost-burdened, compared to less than 20 percent of homeowners.

In Lynnfield, about 59 percent of renters spent more than 30 percent of their income on housing, while only 19 percent of homeowners did so.

Similarly, 56 percent of renters in Hingham were cost-burdened, compared to 19 percent of homeowners.

The sharp increase in rents between 2019 and 2023 — an increase of about 16 percent for a one-bedroom apartment, from $1,545 to $1,794, according to Apartment List — has put further pressure on renters.

Meanwhile, wages have failed to keep pace with rising housing costs, exacerbating the affordability crisis.

The latest data paints a sobering picture of how housing costs continue to reshape life in Greater Boston, increasing pressure on renters and contributing to a growing exodus from the area.

As the housing market remains out of reach for many, the need for policy solutions to address this crisis has never been more urgent.

House prices show no signs of cooling down in the coming year. National home prices are expected to rise 3.7 percent in 2025, matching the steady growth rate since 2012, according to a forecast by Realtor.com.

On average, 45.6 percent of Boston-area renters were cost-burdened, compared to just 26.7 percent of homeowners

The real estate site predicts even sharper increases in 16 major metropolitan areas, with Florida leading the way as five cities in the Sunshine State are expected to experience double-digit price growth.

The southwestern region, which includes states such as Arizona, Colorado and Nevada, is forecast to see the highest peaks.

Phoenix tops the list with a projected increase of 13.2 percent, followed by Colorado Springs and Tucson, with projected growth rates of 12.7 percent and 12.4 percent, respectively.