The housing crisis has had a profound effect on Massachusetts.
The state’s population is shrinking at an alarming rate, and more and more of its housing stock is in danger of being sold off in a foreclosure auction.
That means that Massachusetts now ranks among the worst-affected states in the country for the number of people who are living in their homes.
In Boston, for example, more than 20,000 residents lost their homes in the last year alone, and some estimates suggest that some 400,000 homes could be at risk of being lost in the coming years.
MassDOT recently warned that the number and types of homes being foreclosed on in Massachusetts are on the rise, as well.
This is not the first time that the state has faced this problem.
In the early 2000s, the federal government imposed a moratorium on foreclosures in Massachusetts, but it has since been lifted.
Today, the state is still struggling to cope with the cost of repairing damaged homes and paying back mortgages that were already paid.
“Massachusetts is still in the midst of a real estate crisis, and the people of Massachusetts are still struggling in that,” said Elizabeth Stiles, director of the Center for Massachusetts Real Estate at the University of Massachusetts Boston.
“But I think that the crisis is coming to an end and we have a chance to reverse the trend.”
The number of Massachusetts residents who are experiencing foreclosure has grown steadily over the last two decades.
As of October 2020, more people than ever were experiencing foreclosure, according to a report from the nonprofit Housing Choice and Equity.
In recent years, however, the number has continued to decrease.
In a recent report, Housing Choice calculated that there are approximately 8.7 million Massachusetts residents living in a rental situation, and another 8.2 million renters in a similar situation.
This means that nearly 40 percent of the state’s housing stock could be foreclosed in the next few years.
That number is expected to rise as more people begin to live at home, which would push the cost up.
A new survey conducted by the Massachusetts Housing Finance Authority (MHFA) shows that Massachusetts homeownership rates are now lower than those of the rest of the country, and are expected to drop further as the country recovers from the recession.
The survey found that homeownership was only 62 percent of median household income in Massachusetts in 2018, and that rates of home ownership are expected decline by 20 percent by 2030.
A growing number of residents in the state are also worried about losing their homes to foreclosure.
In fact, more and less of the properties that were foreclosed were purchased with money from the federal Housing Assistance Program (HAP), which provides financial assistance to low-income and disabled homeowners.
For years, the Federal Housing Administration (FHA) has provided money for most of the homes that were purchased under the program.
However, the FHA is not allowed to take loans out on properties that are less than 20 percent owned by residents.
Now that the federal funding is ending, many of these properties are going to be auctioned off in the foreclosure auction process, which is a huge drain on the state.
“This is an opportunity for the state of Massachusetts to move to more stable housing market, which will bring more affordable housing to the state,” said Stiles.
“The housing market in Massachusetts is very vulnerable to a huge number of foreclosing investors, and this is a perfect opportunity to put our state on a path to recovery.”
For many of the families who have lost their home in Massachusetts this year, it is a matter of survival.
“I’m just trying to be optimistic,” said Jodi Stokes, whose family home in Cambridge was foreclosed.
“There are a lot of people that are trying to move forward and try to find a new home, and I think this is the time to do it.
But we’re going to have to get more people to come out to the market and help us.”