Greater Boston reaches historic single-family home price above $1 million

In June 2025, the median price for a single-family home in Greater Boston reached $1,003,250, marking a significant milestone as it surpassed the $1 million mark for the first time. This price increase reflects a 2.4% rise from May 2025, when the average was $980,000, and a 4.5% increase compared to the same time last year, which saw an average of $960,000. This trend has raised concerns among residents, especially renters who fear that homeownership may remain out of reach due to high prices. The spike in home prices stems from a competitive housing market in Greater Boston, where demand far outweighs supply. Many prospective homebuyers are vying for a limited number of attractive properties, leading to bidding wars that push prices beyond what many would have previously thought possible. Boston realtor Randall Horn notes that the perception of what homes at that price represent has changed; a million-dollar home might no longer reflect grand mansions but rather modest single-family houses lacking certain amenities. Local residents express a mixture of shock and understanding about this rapid price increase. Claire Sedgwick, a renter in the Back Bay, commented on the situation, indicating that while the situation is surprising, it is not entirely unexpected, given the city's desirability and historical significance. She noted the concern of young renters who feel homeownership is increasingly unattainable. Real estate value is often tied to the city’s excellent schools, affluent neighborhoods, and overall quality of life, making the market intensely competitive. To address the affordability crisis exacerbated by rising prices, efforts are underway to increase the housing supply through legislative means. A new Massachusetts law allows residents to build Accessory Dwelling Units (ADUs) on their properties, aimed at providing more housing options. Moreover, initiatives have been introduced to convert vacant office spaces in Boston into housing, a move advocated by Mayor Michelle Wu. Without a steady increase in affordable housing, many fear that the escalating costs will continue to push out prospective homeowners, particularly those in their 20s and 30s who struggle to enter the real estate market.