The real estate market in Massachusetts is far from uniform. While places like the Boston metro area and certain coastal towns are seeing surging prices and intense demand, other regions are being left behind—creating a growing divide in housing opportunity and value appreciation. Understanding which areas are lagging, why, and what that means for buyers and investors is key in the Bay State’s complex housing landscape.

1. The Uneven Real-Estate Boom in Massachusetts

Some Massachusetts markets are thriving: median home prices, bidding wars, and rapid appreciation are common in high-demand areas.
By contrast, regions such as parts of Western Massachusetts and older post-industrial cities are experiencing slower growth, stagnating home values, and weaker demand. For instance, a report on Western Massachusetts highlighted issues including stagnant wages, limited housing supply reform, and elevated cost burdens for renters.
These disparities are part of what we call regional inequality in real estate — when location, infrastructure, economy, and policy shape vastly different outcomes across a single state.

2. Why Some Regions Are Being Bypassed

Several factors are driving regional inequality in Massachusetts real estate:

• Proximity to jobs and transit: Areas near Boston, Cambridge, and major employment hubs have strong demand. Regions farther removed often lack access to major job centers or transit.

• Zoning and housing supply constraints: Some municipalities limit housing density or multi-family development, restricting growth and keeping prices stagnant.

• Economic and wage stagnation: Regions with limited job growth or lower income growth struggle to keep pace with appreciation. In Western MA, renters and homeowners alike face cost burdens despite lower median prices.

• Infrastructure and amenities: Access to schools, medical facilities, cultural amenities and infrastructure (broadband, roads) matters. Areas lacking these features are less attractive to buyers.

• Investor focus and relocation trends: Investors and affluent buyers often concentrate in “hot” areas, pushing value up there while other regions garner less attention.

3. Example Regions & Markets Comparisons

Western Massachusetts (e.g., Berkshire County, Franklin, Hampshire)

• A recent report found that renters in Western MA are especially cost-burdened and that housing supply is insufficient to meet demand, despite slower overall growth.

• Median home-price growth is modest compared to the metro Boston region.

Post-Industrial Cities / Older Suburbs (e.g., Brockton, Fall River, New Bedford)

• Studies show that although these markets are more affordable, they are being pushed by spillover demand but still face structural challenges (aging housing stock, less investment).

• These areas may have strong appreciation in percentage terms, but from a lower base, and often for fewer buyers.

High-Demand Coastal & Metro Areas (e.g., Boston, Cambridge, Cape Cod)

• These are winning markets: steep price growth, high incomes, strong amenities and infrastructure.

• While not being bypassed, their growth can widen inequality by making affordability even more elusive elsewhere.

4. What This Means for Investors, Buyers & Policymakers

For Buyers & Homeowners

• In “bypassed” regions, you may gain value relative to cost, as purchase price is lower and upside may exist—but the trade-off is slower growth and less liquidity.

• Ensure you understand local economic fundamentals: job growth, demographic trends, amenities and commuter ties.

• For first-time buyers in Massachusetts, looking outside the high-price corridors can make sense—but ensure the trade-offs of location are acceptable.

For Real-Estate Investors

• Under-the-radar markets may offer better cap rates or yield, but also bring higher risk (slower appreciation, demand volatility).

• Focus on markets where infrastructure or policy changes may boost growth (e.g., new transit, zoning reform, downtown revitalization).

• Consider value-add strategies, such as rehabilitating properties in towns with potential but historically low demand.

For Policymakers & Communities

• Addressing inequality means supporting housing supply in overlooked regions, improving infrastructure, and revising zoning laws to make more housing feasible. Reports highlight that restrictive land use in Massachusetts has contributed to spatial economic inequality.

• Investment in job growth, broadband, transit, and amenities helps make these regions competitive in the housing market.

5. How to Spot If a Region Is Being Bypassed—or Rebounding

• Compare median home-price growth over the past 5 years across towns and counties. For example, some coastal towns have seen double-digit increases while others have flat performance.

• Check days on market (DOM) and inventory levels: longer DOM or high inventory may indicate weaker demand.

• Examine local job growth, distance to major employment centers, transit access, and demographic shifts.

• Ask if there’s active investment or revitalization (mill conversions, downtown redevelopment), which may indicate a rebound in formerly bypassed regions.

Regional inequality in Massachusetts real estate isn’t inevitable — but it’s real. While some communities ride the wave of high demand, high incomes, and strong amenities, others remain on the sidelines, waiting for their moment. For buyers, investors, and policymakers alike, understanding which regions are being bypassed, why, and what it would take to reverse that trend is vital.

If you’re exploring Massachusetts real estate, don’t just look at state-wide averages—drill into the regional details. Where one town is booming, another may be stagnating. Your next opportunity may lie in the overlooked regions that have the fundamentals to catch up. The question is: can you identify which ones?

Matt Witte strives to be the best realtor in Andover, MA.

Any questions about real estate, reach out to Matt Witte, Andover Realtor, MA