This is the hardest state in the country for young adults to buy a home

Buying a first home has long been a key milestone for young adults, symbolizing independence and financial stability. But for many in the US, stepping into the housing market has become increasingly difficult.

Nationally, homeownership rates dropped among all age groups, but only 36.4% under the age of 35 are homeowners, according to the National Association of Home Builders.

“Massachusetts is the least affordable state in the US in terms of home price,” says Hannah Jones, senior economic research analyst at Realtor.com®. “The median listing price in July was $797,000 in Massachusetts, which would require a minimum recommended income of roughly $210,000 annually to afford.

“Affordability challenges in Massachusetts have deepened over the years, fueled by strong demand as people move to the greater Boston area for its educational and career opportunities,” says Jones.

Todd J. Drowlette, a real estate broker based in the Northeast region, tells Realtor.com that several factors contribute to low homeownership rates among young adults.

“One major factor is the number of colleges and universities in Massachusetts, including Boston College, MIT, Harvard, Boston University, etc. These universities bring in students who need apartments, driving up monthly apartment rents,” says Drowlette.

“Because there are many colleges and universities, there are also many employers paying good salaries,” says Drowlette. “This drives the costs of homes up. For younger adults, the result is that those who can afford to stay in Boston stay, but often remain in apartments for longer than [in] other parts of the country. Those who cannot afford it take employment elsewhere.”

The realities of these disparities are clear for first-time buyers.

Jamie Iwanicki, 30, and his wife are closing on a home in West Brookfield, about an hour away from his office, after being priced out of towns closer to his tech sales job in Marlborough. “The commute stinks, but it’s what we had to bite the bullet and do,” Iwanicki told the Boston Globe.

Harrison Ford of Watertown has saved money while working as a financial officer at MIT, but he still can’t afford a home in his hometown, he told The Globe.

“I’m really happy to have grown up here,” said Ford, who rents a small studio in his late uncle’s two-family home. “But at the same time, I’m getting priced out of my own neighborhood. They’re so out of reach.”

For those navigating these obstacles, flexibility is essential.

Some buyers are broadening their search radius, considering smaller towns or suburbs with higher homeownership rates.

Others are adjusting expectations, looking at smaller homes, shared ownership arrangements, or waiting for market changes.

Affordability across the country

The challenge isn’t unique to Massachusetts—states such as California, New York, and Hawaii also have low rates of young-adult homeownership, largely due to high property values.

National housing data shows why this milestone is harder to reach than ever.

The Realtor.com July Monthly Housing Market Trends Report found the median list price at $439,990, up 0.5% from last year but essentially flat over the past two months.

The price per square foot—a gauge that accounts for the size of homes entering the market—rose 0.5% as well.

Since June 2019, the typical list price has climbed over 37%, while the price per square foot has increased nearly 52%.

These long-term trends have made affordability a pressing concern for young buyers, though stabilization in recent months might provide some relief.

Despite the challenges, opportunities remain. With median prices holding steady nationally and incremental gains in affordability, young buyers who plan carefully and act strategically can still find their footing in the housing market.

First-time homeownership may require patience and compromise, but it is far from impossible—and the rewards of owning a home remain as compelling as ever.

“Towns that combine job opportunities with affordability and invest in amenities attractive to young households and families tend to see stronger young adult homeownership rates,” says Jones.