Affordable housing is becoming a hot-button issue across the country. Mortgage rates and property values are higher than ever and only poised to go higher still, and residents of major metropolitan areas are struggling to find affordable homes, or even to stay in the homes they already own. Things aren’t much better for renters, as stories abound of people being priced out of their apartments because of soaring property values. 

Historically, if you were to guess the most expensive place to rent an apartment, you might say New York or Los Angeles, and you’d probably be right. But believe it or not, the housing market in Massachusetts, particularly the Boston-Cambridge-Newton area, has seen such a surge in rental prices that the median rent in these areas is $3,490 — which is higher than the San Jose-Sunnyvale-Santa Clara metropolitan area in California. Much of the time, renting tends to be cheaper than home ownership in the US — but with Massachusetts rents being as high as they are, is that still the case? 

Cheaper to buy or rent? 

No matter where you live, choosing between buying and renting can be a major decision, especially if you’re looking for a place to live in a high-cost area like Massachusetts. Here are some of the major factors to consider: 

Payments: As previously mentioned, the median rent in Massachusetts is $3,243, as compared to the national average of $2,150. Mortgage rates in Massachusetts are considerably lower at $2,489, but mortgages can also vary significantly depending on factors like home size and neighborhood. This also doesn’t include expenses such as interest, property taxes, maintenance, and more. From a monthly payment standpoint, however, you’re still likely to come out ahead if you’re in a position to buy a home. 

Upfront Costs: When it comes to renting, your upfront expenses tend to be very simple: usually a security deposit and possibly first and last month’s rent. While this can be a significant payout, it’s generally much less than the down payment on a house (typically 20% of the home price, which in Massachusetts comes to over $125,000), closing costs, and other fees. 

Long-term benefits: While renting is cheaper much of the time, that’s not currently true in Massachusetts, and renting won’t build any equity the way home ownership does. A house is an investment (albeit one that comes with maintenance responsibilities), but a rental unit will never appreciate in value for you, the tenant. However, renting does offer much more flexibility should you need to move. 

Insurance costs: Homeowners insurance is mandatory if you have a mortgage in the United States, and not having it is courting disaster even if you own your home outright. Homeowners insurance in Massachusetts will run you on average $912 per year. This is where renting has a major advantage: according to Kristine Lee at The Zebra, the average annual Massachusetts renter’s insurance premium is $217 — while still higher than the national average, it’s about one-third the cost of a homeowners insurance policy. 

More affordable cities for renters in Massachusetts 

If you’re looking for affordable rentals in Boston (where even the renters insurance is significantly higher), you’re likely to be in for a bad time. But if you’re moving to Massachusetts and are looking for some alternatives, there are some other cities in the state that are less expensive for renters. Springfield, Worcester, and Lowell, for example, all offer a good balance between affordability and amenities, making them appealing alternatives. 

The debate over rent control in Boston 

As rent in Boston continues to skyrocket, the city has proposed reinstating rent control laws, which were previously abolished in 1994. The current proposal suggests capping rent increases in line with the Consumer Price Index, which would limit those increases to 6 to 10% annually. 

Proponents of this idea point to the increased stability and affordability it could provide, as well as protection for low-income residents who stand the biggest chance of displacement should rent suddenly increase dramatically. Meanwhile, opponents of the proposal worry it may discourage landlords and property owners from maintaining and improving their units, and could lead to a decrease in the supply of available rentals, which could unbalance the housing market. 

Whether or not said proposal passes muster, there are some resources if you’re looking for help finding a rental property in Massachusetts: 

• The Massachusetts Rental Voucher Program (MRVP) which provides assistance to low-income households 

• Section 8 Housing Choice Voucher Program, which helps very low-income families, as well as the elderly and disabled, afford safe and reliable housing in the private market 

• Residential Assistance for Families in Transition (RAFT) is a more short-term assistance program for those families and individuals at immediate risk of homelessness.