Andrew J. Copelotti
Massachusetts has developed one of the most successful state economies in the nation. It serves as a global center for higher education, healthcare, technology and innovation. Despite its strengths, the commonwealth faces a growing, increasingly noticeable problem: People are leaving.
This is not a blip. It is a trend.
More people left Massachusetts than moved into it from 2022 to 2023, making it one of the states with the highest outflows in the country. These departures resulted in a net loss of about $4.2 billion in adjusted gross income, which is tax revenue the state desperately needs.
Since 2020, Massachusetts has lost about 182,000 residents to other states. In 2025 alone, over 33,000 people moved away. While international immigration has kept the state’s population steady, the ongoing domestic outflow tells a different story – one of residents deciding that the cost of living here is simply too high.
Why are they leaving? The answer is simple: Massachusetts is becoming too expensive for more and more of its residents.
Consider Housing Costs, Taxes Together
Start with housing. The state consistently ranks as one of the most expensive in the country, and the pressure is especially intense in Greater Boston. Rents and home prices have significantly outpaced incomes, leaving many households stretched thin.
In some Gateway Cities, the typical renter earns around $54,000 a year, while the income needed to afford average rents is closer to $94,000 – a staggering $40,000 gap. That is not just a market imbalance; it is a structural failure.
For younger residents, the effects are particularly severe. Massachusetts trains some of the finest students worldwide, only to see many of them leave after graduation. High housing costs make it hard to establish a life here – whether that’s through renting an apartment or buying a home – or to start a family. Over time, this pattern diminishes the state’s talent pool and hampers its long-term economic growth.
Taxes add another layer to the problem. Massachusetts is not the highest-tax state in every category, but the overall burden – combined with housing and other costs – creates a strong incentive to look elsewhere.
States like Florida, Texas and New Hampshire offer a significantly lower cost structure, and increasingly, they are competing successfully for the same residents and businesses that Massachusetts has long attracted.
Then there are utilities. Energy costs in Massachusetts are among the highest in the nation, especially during the winter when heating bills rise. For many households, these expenses are not minor – they are decisive. When housing costs, taxes, and utility bills all trend upward, the combined impact becomes difficult to overlook.
Young People Driven Out
The economic impact is already evident. When residents leave, they take more than just their belongings; they take income, spending power, and tax revenue. IRS estimates indicate that Massachusetts loses billions of dollars in adjusted gross income each year due to outmigration. Much of this loss comes from high earners, which worsens the effects on state revenues and local economies.
The demographic profile of those leaving should raise even greater concern. Many are in their prime working years, between 26 and 34, according to research by The Boston Foundation. These are the people who drive innovation, form households, and support communities. Losing them is not just a short-term setback – it’s a long-term problem.
To clarify, cost isn’t the only factor influencing migration. People move for jobs, family, and quality of life. But affordability affects all these choices. A job offer in another state looks more appealing when housing costs are half as high. Staying close to family becomes tougher when rent takes up half your income. Over time, high costs quietly but strongly push people away.
Massachusetts isn’t the only state facing these challenges, but it’s especially vulnerable. Its economy relies on attracting and keeping talent. If that talent increasingly chooses to leave – or never arrives – the state’s competitive advantage will decline.
The solution isn’t a mystery, even if it’s politically tough. The state needs to build much more housing, especially in places where people want to live. It must take the cumulative burden of taxes and fees seriously and face the reality of high energy costs that continue to pressure household budgets.
None of these challenges can be solved overnight. But failing to address them carries its own cost – one measured not just in dollars, but in people.
Massachusetts has spent decades becoming a place where people want to live, work and innovate. The risk now is that it becomes a place they can no longer afford to stay.
Andrew J. Copelotti is a principal at Boston-based real estate development and investment firm Boylston Properties.
