CAMBRIDGE, Mass. — Owning a home is the American Dream, but it keeps getting further out of reach for many people.
That’s usually the case for younger buyers trying to break into the real estate market.
28-year-old Andrew Mikula would like to be a homeowner one day.
Right now, the Cambridge resident is actually feeling fortunate to have a 700-square-foot apartment all to himself.
“I also have friends who are still living with their parents well into adulthood or living with roommates well into adulthood.”
Other friends have given up and moved out of the state.
“Massachusetts is the hardest state in the country for young adults to buy a home. The middle class is shrinking because home prices have exploded since the Great Recession.”
This set of circumstances is creating a big hurdle for young homebuyers.
According to the National Association of Realtors, the median age of a first-time buyer was 29 years-old in 1981.
It rose to 33 years-old in 2021.
By last year, the median age hit 40 years-old.
As a housing policy researcher, Mikula decided it was time to act. He created Legalize Starter Homes and began collecting signatures for a ballot question in this year’s election.
The question focuses only on single-family homes.
“We’re trying to make it legal to build new single-family homes on lots as small as 5,000 sq ft, about the size of an NBA basketball court, as long there are 50 feet along the street of the lot, and the lot has access to public sewer and water services.”
This could be contentious in some suburbs that require larger lot sizes for single-family homes.
Mikula believes a law like this will help more than just first-time homebuyers.
More small home options might also be attractive for baby boomers who are empty nesters.
“Many of them own a home that has gained a lot of equity, and they’re concerned about a couple of things, number one, where are they going to go?” said realtor Marie Presti of the Presti Group, which is based in Newton and Stoneham. “They want a smaller property that may have less maintenance for them, but those properties are being gobbled up. For them to sell, they would actually have capital gains taxes.”
But if older owners aren’t selling their underutilized properties, that makes it harder for a younger, growing family to trade up.
“I’ve been telling people, it’s like musical chairs, housing musical chairs where the music never starts. Everyone is locked in,” said State Senator Paul Feeney who represents communities in Bristol and Norfolk counties.
He has a proposal that he thinks could help break up this logjam.
It would offer up to a $10,000 tax credit for anyone who moves to a new residence where the square footage is less than the home they’re selling.
“Maybe that’s the incentive that puts them over the top and allows that decision to be made, and in doing that, opens up their home for younger families looking for an entry into the market. It creates some churn.”
Feeney believes the housing crisis needs to be solved piece by piece to secure a healthy future for the state.
“The population that’s leaving Massachusetts, unfortunately, are young families. Young people who are getting their degrees here in Massachusetts could be contributing to our economy, and they are saying, you know what, there’s no place for us to live.”
Organizers for the Legalize Starter Homes have cleared their first major hurdle by collecting more than 85,000 signatures.
This isn’t the only likely housing-related ballot question voters will face this fall.
Supporters of statewide rent control have also collected more than enough signatures so far.
This is a developing story. Check back for updates as more information becomes available.
Download the FREE Boston 25 News app for breaking news alerts.
Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW