Massachusetts is facing significant challenges concerning its housing market, particularly within seasonal communities where homes traditionally serve vacationers rather than year-round residents. More than two decades ago, Alisa Magnotta found herself among many Cape Cod residents who rented out their homes during the summer months to tourists, providing rental income to offset annual costs. This practice allowed for vibrancy within seasonal communities. Today, the situation has drastically evolved, fueled by the rise of short-term rental markets and changing pandemic-driven real estate dynamics.
With about 110,000 housing units sitting vacant at any time due to part-time use, Massachusetts is grappling with the inherent complexity of its housing shortage. “It’s not about the shortage of housing units. It’s the way they’re being used,” remarked Magnotta, now the CEO of the Housing Assistance Corporation. State officials are increasingly noting this disconnect between housing availability and actual occupancy.
To address these mounting pressures, Massachusetts Governor Maura Healey proposed sweeping housing legislation, which includes provisions aimed at seasonal communities. This initiative designates specific municipalities, such as Nantucket and Dukes County, where over 35 percent of the housing is used for seasonal living. These towns are expected to develop policies aimed at increasing the viability of year-round living and managing their fluctuated populations.
State Senator Julian Cyr, who has been pivotal in championing these new policies, points out the necessity of redirecting how these communities manage their housing. “It’s about crafting tools for towns so they don’t have to go through extensive legislative processes to implement housing subsidy programs,” Cyr stated. Recognizing the urgency of the housing crisis, Cyr emphasized the existential threat to traditional community structure posed by the shortage of affordable, year-round housing.
Healey’s housing strategy indicates at least 220,000 new homes will need to be built by 2035 to meet the state's growing demands. Massachusetts faces the second highest cost of living nationwide, increasing pressure on the need for appropriate housing options for younger families and individuals seeking stability. Many current residents are being priced out, leading to declines in local populations, particularly among young families.
The need for action has never been more apparent. Between 2018 and 2022, the Massachusetts housing needs assessment found roughly 258,000 vacant units, with less than 20 percent actually available for sale or rent. This alarming data signifies only 1.6 percent of homes were listed for either selling or renting as of 2022, contributing to the state’s already dire housing crisis.
Short-term rental practices have radically altered the fabric of community life. States like Nantucket and Martha’s Vineyard see 60 percent of their homes used seasonally. Meanwhile, Cape Cod has 36 percent of homes set aside for short-term rentals, leading to demographic shifts and concerns over the continuity of the local culture and economy.
Many seasonal community residents, including real estate professionals like Cameron Volastro, see the duality of tourism's impact. “The condition of being driven to the area by tourism creates economic highs and lows, but we need to protect the year-round community,” Volastro explained. This balancing act is becoming more precarious as the housing crunch continues to escalate. Seasonal conversions leave towns struggling to retain necessary workers like public services staff, exacerbated by inflations and rising difficulties in locating appropriate housing.
Magnotta stated, “The town can’t function without adequate housing,” emphasizing the practical struggles faced by communities reliant on tourism. Housing stability is threatened by the overall conflation of seasonal and permanent residency, leading to difficulties absorbing the fluctuated workforce necessary for day-to-day operation.
To mitigate these issues, the newly formed Seasonal Communities Advisory Council is focusing on implementing policies around tiny home construction, upholding accessory dwelling units, and prioritizing municipal employees for housing positions. Reflecting the complexity of the climate, Magnotta noted, “We have to be good stewards of where we live.” The sense of urgency among residents drips from the discussions, with concerns about long-term viability for local cultures.
Despite the push for innovative housing policies, concerns abound. Naysayers highlight potential inequities surrounding property tax initiatives, which may disproportionately benefit the wealthiest communities without addressing the fundamental issues faced by low- to moderate-income residents. If adjustments are delayed or denied, Cyr warns, “We may be heading toward having our communities become like museums.”
Massachusetts stands at a crossroads, ever cognizant of its character shaped by seasonal patterns. Nevertheless, as the challenges bloom more urgent, advocates insist on attention to housing methods. Without immediate and strategic changes, the viability of year-round living may become threatened, and the very identity these communities hold so dear could very well fade.