A new poll found that, despite having what’s typically thought of as a stable housing situation, a third of Massachusetts homeowners have had to skip other bills to afford their mortgage payment. iStock photo

Current Massachusetts homebuyers are satisfied with their purchases as they build equity and achieve what has been a key part of the “American dream,” but financial realities mean that, for younger generations, that dream looks different.

A survey of 850 Massachusetts homeowners by the MassINC Polling Group, sponsored by The Boston Foundation, found that 88 percent of respondents were satisfied with being homeowners. Additionally, 47 percent of homeowners surveyed stated that owning a home has helped their financial stability.

“People have seen in recent memory, especially in our region, home prices continue to increase,” said Luc Schuster, head of Boston Indicators, the research arm of The Boston Foundation said. “There’s an implicit assumption that home prices will continue rising. If that’s the case, once you get into home ownership, even if it’s really tough to make that first step, once you’re in, then you’ll be good.”

But for some homeowners the eventual reward can seem illusive when current costs are stretching their wallets.

Price Jumps Don’t Match Wage Growth

The MassINC/Boston Foundation survey found that for 34 percent of respondents over the last 12 months, it has been very difficult to afford their mortgage or other housing payments. And 29 percent of respondents even had to skip other payments in order to make to afford their mortgage.

The year-to-date median sales price in Massachusetts was $625,000 in May 2026 according to The Warren Group, the publisher of Banker & Tradesman. This represents a 30.2 percent increase from May 2022.

These price increases have gone hand in hand with a lack of comparative wage growth.

The Boston Foundation’s 2025 Greater Boston Housing Report Card found that hopeful homebuyers would need to make $162,224 a year to afford the median “starter home” at the lower end of Greater Boston’s housing market. This is a 3.47 percent increase since 2024 and up 65.63 percent from 2021.

The report defined ability to afford a home as a monthly housing payment that wasn’t more than 30 percent of a family’s monthly income.

When looking to buy a home, buyers must also assemble a down payment and closing costs, along with stomaching the sticker price. Homebuyers also have to factor in the cost of moving, whether purchasing supplies or hiring a moving company.

Costs do not end once the contracts are signed. Property taxes can be a significant expense for homeowners, as can ongoing maintenance and repairs.

“There are huge benefits to being a homeowner, but sometimes people romanticizing home ownership lose sight of the benefit of renting and having some of those lumpy one-time maintenance costs actually fall on the landlord instead,” Schuster said.

The Value of Homeownership

Homeownership has long been a part of the “American dream.” Soldiers coming back from World War II sought a home to establish roots for themselves and their family. Buying that home also allowed them to build wealth in the form of the home’s value as they paid down their mortgage, and their property value rose.

This remains a primarily motivator for homebuyers today.

“Your rental costs are already going to be high,” Gibson Sotheby International Realty CEO Colleen Barry said. “Home ownership costs are higher, but you get to maintain a portion of that.”

For the majority of Greater Boston, this has been their experience. Two-thirds of households in Greater Boston already own homes, Schuster said. With prices increasing, they have been able to build equity in an asset whose value is increasing at an impressive rate.

As rental costs rise, they also bring less stability. But homeowners typically expect relatively consistent housing payments throughout the duration of their mortgage – property taxes and insurance aside – unless they choose to refinance. Renters do not have the same luxury, as rent increases can occur as soon as a year after an initial lease.

Agents urge aspiring first-time homebuyers to consider buying a condominium, whether in a triple-decker or a larger building, as a stepping-stone to a single-family home iStock photo

Greater Boston homeowners have enjoyed a particularly strong form of that benefit over the last six years. While renters had to deal with rent increases along with the rising costs of daily necessities, most area homeowners were sheltered from rising housing costs since they’d already purchased a home of their own.

“They locked in a monthly mortgage payment at a much lower interest rate, and that served as a hedge against inflation,” Schuster said. “They’ve seen their housing costs stay the same, even though broader prices and incomes have risen.”

But a psychological factor also keeps pushing Bay Staters into home ownership, according to Schuster, that builds on what aspiring homeowners have seen their relatives achieve.

“I do think a lot of it is psychological,” he said. “There’s a feeling of security and having achieved a version of the American dream.”

Younger Generations Shifting Perspective?

These financial pressures have forced younger prospective homebuyers to change what homeownership looks like for them, agents say.

The median age of first-time homebuyers continues to rise. The latest data from the National Association of Realtors shows the median age is 40, an all-time high.

Some buyers who Medford-based RE/MAX Andrew Realty Services broker associate Andrew Veneziano has worked with have had to adjust their timeframe for purchasing a home or where that home is located.

Additionally, Veneziano – who largely works with first-time homebuyers – has seen buyers move from looking at single-family homes to aiming for condominiums. These units can often deliver homeownership at a more affordable price, and a stepping stone.

Sam Lattof

“Some folks might have to rethink that vision of home ownership,” he said. “I have some clients who are again living in properties for a shorter duration before moving on to that longer-term property.”

Homeowners association fees can make purchasing a condo seem less appealing, but Veneziano argued that while these can seem high, the services they buy can make them worthwhile.

“What if your water, sewer, your hot water, maybe your heat’s included, or maybe your landscaping and exterior maintenance is included,” he said. “You’re paying maybe $500 to $600 a month, but you have all those things included versus owning a single-family and having to do all those things yourself.”

For some, achieving the dream of homeownership means leaving Massachusetts. Schuster noted that the 26- to 34-year-old age demographic is the largest group of people leaving Massachusetts.

“Those households are factoring in many different things when making a big decision like that to move out of state, but it seems clear that high housing costs in Massachusetts are one of the things pushing those folks out, Schuster said. “To the extent that that’s right, I would suspect many of them are purchasing a home in the new state of residence. It’s certainly not the case that all young adults don’t care about homeownership anymore.”