Housing shortage continues to affect Massachusetts economy

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The UMass Donahue Institute reports the state’s economy slowed in the first quarter of 2018 and cites the lack of housing as an important factor. As the report states, “the challenge for Massachusetts going forward will be to address the housing, transportation, and infrastructure constraints that make it more difficult for the workers who will be needed to fill these positions to relocate to the state and meet the needs of growing employers. While this challenge is not new, the price of inaction is high and rising.”

The report also says that the economy is operating at capacity but demographic constraints on the labor force (such as housing supply) are slowing the growth. It also notes that the low unemployment rates signal that the slowing pace of job growth is due to a shortage of workers, rather than a decrease in employer demand.

MAR has long supported legislation at the state level that will make it easier to build housing so our economy can continue to grow and we can continue to attract the employees we need to fill these jobs. Two examples of such legislation are MAR’s recent efforts on the HOME Bill and Governor Baker’s Housing Choice Initiative,

Read the full UMass Donahue Institute report.