Buying a home in Massachusetts: prices, the deeds excise and MassHousing help

#Massachusetts prices against Massachusetts paychecks

Massachusetts has the 2nd-highest median household income in the country, yet the median home costs 5.8 times that income — higher than the US ratio of 4.4. Owner-occupancy is below the national rate: 62.4% of occupied homes are lived in by their owners, the 8th-lowest share among the states and DC, and the median renter pays $1,848 a month.

Inside the City of Boston the median value is $722,800, above the statewide figure; the Boston market page breaks the city down further.

#The monthly bill on the median home

The $546,660 loan leaves $286,090 of headroom under the 2026 baseline conforming limit of $832,750. Where FHFA designates a county as high-cost, the limit is higher, up to $1,249,125; above the local limit you are in jumbo loan territory. Try other prices in the payment calculator.

#What the median income actually buys

Freddie Mac suggests keeping housing costs under 30% of gross income. For the median Massachusetts household that is $2,621 a month, and here is the home it supports at today’s average rate:

#MassHousing’s down payment loan

MassHousing, the state’s housing finance agency, pairs its own first mortgages with down payment assistance for income-eligible first-time buyers. You buy a single-family home, condo or two- to four-family property as your primary residence, use an affordable MassHousing mortgage through an approved lender, and complete homebuyer education.

Even the full $30,000 covers 4.9% of the median price, so expect to bring savings for part of the down payment and closing costs. MassHousing’s online eligibility check tells you whether you might qualify. More options are compared in the first-time buyer programs guide.

#The deeds excise at closing

Massachusetts taxes recorded deeds at $2.28 per $500 of the sale price, less any mortgage the buyer assumes — 0.456% of the price, which ranks 12th of 51 among state transfer taxes. On the median home that is $2,770. The Department of Revenue doesn’t name a payer on its rate page, so check your purchase and sale agreement. The closing cost calculator adds the excise to your other closing costs.

#An older housing stock

Half of Massachusetts homes were built before 1965, which makes the state’s housing the 4th-oldest in the country (the US median is 1981). Older homes can mean original heating systems, aging roofs and wiring, and lead paint, so put a thorough inspection in your offer and keep a repair reserve on top of the mortgage payment. Ask for the property’s past utility bills too; heating an older house through a New England winter can add noticeably to monthly costs.

#Protect your equity with a declared homestead

Massachusetts homeowners get $125,000 of automatic protection against many creditors. Recording a declaration of homestead at the Registry of Deeds for your county raises it to $1,000,000 per home, and older or disabled owners can each protect that amount. The protection doesn’t shield you from your mortgage lender or a home equity lender, and you can record it right after closing.

Property tax is the cost that follows you every year: at 1% of value, the state’s effective rate is above the national 0.89% and ranks 19th of 51, though each city and town sets its own rate. Compare renting and buying over your time horizon in the rent vs buy calculator.