Slow population growth has led to a slow growth of housing demand since 2000, while decreases in household size and other demographic trends are changing the quantity and types of housing needed in the Bay State, according to a recent report from the University of Massachusetts Donahue Institute.

The housing market assessment report also stressed that while weak or negative job growth may continue to discourage population growth and housing production broadly, targeted responses to support economic stability are needed.

In spite of the decline in housing prices, Massachusetts still faces a serious affordability challenge, especially for the most economically vulnerable populations. Even though Massachusetts outpaces the nation in providing tenant subsidies, the state’s housing safety net has not fully met the housing assistance needs of our most vulnerable citizens during these difficult economic times, the report stated.

Statewide housing shortages have been in evidence since 2000 and the report projects a likely continuation in that trend through 2012. Even in regions of the state where it appears there are small housing surpluses, affordability issues and other problems indicate that the surplus housing may be poorly matched to the needs of the region’s householders.  

"This study will be a valuable tool for us, especially in these very challenging times to ensure that we are building housing that will boost our economy and help attract new jobs and businesses to Massachusetts," said Housing and Community Development Undersecretary Tina Brooks. "Actions like these will bolster our regional economic development plans to spark growth and create new opportunities for residents on all income levels throughout the entire commonwealth."