Proposed real estate transfer fees would promote affordability and encourage year-round residence in some of the Commonwealth’s priciest markets, according to a new study from The University of Massachusetts Amherst Donahue Institute.

Affordability remains prohibitive for many prospective Cape Cod and Nantucket residents, according to the study. The price for a median single‑family home in these markets reached $1.4 million on Martha’s Vineyard and $3.7 million on Nantucket in 2024.

Plus, a survey of 291 island employers found that 53% reported losing employees due to housing costs and 55% reported job candidates declining offers due to lack of housing.

While workers forgo Cape Cod living due to costs, 60% of homes on the Outer Cape sit vacant seasonally thanks to second-home and short-term rental demand from high-income buyers.

Researchers found that a proposed 2% fee in Martha’s Vineyard on the portion of sales above $1 million and a 0.5% fee in Nantucket on the portion above $2 million would not cause adverse market impact. The fees would generate $3.3 million and $9.9 million respectively — revenue that could fund adaptive reuse, new construction, lease-to-local plans and other programs, researchers said.

The Martha’s Vineyard Commission and Nantucket Planning and Economic Development Commission requested the study, which examined housing market data from four towns in the Peconic Bay area of Long Island that recently adopted housing transfer fees.

“The housing crisis in Massachusetts requires innovative solutions,” said study leader Kerry Spitzer in a press release. “Our study illustrates how a real estate transfer fee can help to fund interventions in the seasonal communities of Nantucket and Martha’s Vineyard, where the lack of access to housing is creating major challenges for businesses and year-round residents.”