Why Housing in Massachusetts Should Matter to Each of Us

As a Weston resident and professionally as an executive search business leader for over 20 years, I have seen over that time, a change in tone from businesses and leaders, about investing in Massachusetts. This is about building their business here or for leaders, considering moving to the Commonwealth. The cost of living, primarily driven by housing costs, is giving them pause and we need to be concerned about that impact on the long-term economic health of the state. Massachusetts stands at an economic crossroads. Once a magnet for talent thanks to its world-class universities, cutting-edge industries, and vibrant cities, the Commonwealth now faces a formidable obstacle: a severe housing shortage. With median home prices exceeding $722,000 and rents rising nearly 30% faster than incomes, many working professionals are being priced out. Between 2020 and 2022 alone, over 110,000 residents left the state in search of affordability, eroding the very workforce that powers key sectors in our economy.

This is a drag on economic growth. The U.S. Chamber estimates Massachusetts loses around $13.5 billion in output and nearly 91,000 jobs annually due to its housing constraints. Meanwhile, employers report difficulty filling positions because candidates simply can’t find a place to live. Its clear--housing is central to economic vitality.

That’s why lawmakers and business leaders are mobilizing. The Healey‑Driscoll Affordable Homes Act alone pledges $4 billion to build over 40,000 new homes, creating 30,000 jobs, unlock $10 billion in funding, and inject $25 billion into the state economy over five years. Achieving the goal of 200,000 new units by 2030 is not merely a housing agenda—it’s an economic imperative.

The Massachusetts Business Roundtable, a statewide public policy organization comprised of Chief Executive Officers and Senior Executives from some of the state’s largest employers, recently released the survey results of its 2024 Talent and Competitiveness Survey, a survey the Roundtable has conducted in partnership with McKinsey & Company over the past four years. The survey found that Massachusetts is an attractive home for business with talent continuing to be the top reason employers are here. However, the rising costs of living and doing business have emerged as dominant factors influencing employers’ hiring decisions and whether to remain and/or grow outside of the Commonwealth. “What struck me most about the survey results was the acceleration of the impact of the state’s cost of living on employer’s hiring and growth decisions,” said JD Chesloff, President & CEO of the Roundtable. “Employers still love being in Massachusetts for all it has to offer, however the cost of living and fundamental changes in mobility have given employers alternatives that they are exploring.”

The survey found that Massachusetts continues to be a hub for education and technological innovation. However, macroeconomic headwinds outweigh tailwinds as factors influencing where employers are growing their workforce and footprint. The rising cost of living, led by the cost of housing, is the dominant factor influencing organizations’ decisions to remain in Massachusetts.

Of those employers surveyed, 83% cited the cost of living – driven by the cost of housing – as critical to their decision to remain in Massachusetts, up 2.5x from 2022 and more than 50% indicated the largest hurdle to recruiting is candidates’ unwillingness to move to Massachusetts. This has resulted in 40% of respondents planning to grow their workforce outside of the state, doubling since 2023 and almost 6x from 2022.

To learn more, read the full Competitiveness and Talent survey results at https://www.maroundtable.com/issue-based-reports/

Our growth is slowing in comparison to other states. According to the Pioneer Institute’s June 2025 brief,

• From 2020 to 2024, Massachusetts’ private sector per capita real GSP grew by 12.5 percent, well below the national average of 13.3 percent, and significantly behind Florida (26 percent), Texas (22.3 percent), and North Carolina (17.4 percent).
• The state’s per capita real GSP growth fell from fourth fastest in the nation (1998–2019) to 28th fastest (2020–2024).

To learn more from the Pioneer brief, https://pioneerinstitute.org/economic_opportunity/new-report-shows-massachusetts-has-been-in-economic-slow-down-since-2020

To combat this negative impact on the long-term economic health of Massachusetts, it’s critical that all communities do their part helping ease some of the housing costs burden by thoughtfully increasing the housing stock.

In Weston, adding thoughtfully planned, attractive multifamily housing, which fits into the character of the town, will support all our interests in the continued strong economic health of Massachusetts. We need to do our part so all of us and our families can continue to thrive economically in the Commonwealth.

Sincerely,
engageWeston Team
Alice Benson, Nancy Piedra, Tom Timko, Alan Day