Boston is home to one of the hottest housing markets in the country, according to a new report. But it may be financially out of reach for most prospective homebuyers in Massachusetts.

The 02114 ZIP code is the sixth-hottest in the nation for housing, according to . It encompasses the northern slope of Beacon Hill and the West End neighborhood around TD Garden.

That ZIP code has seen a 134% increase in year-over-year sales price growth, with an average sale price of just under $2 million. Compare that to Coos County, New Hampshire, which is third on the list with an average sale price that's just under $470,000.

"It is shaping up largely if you look nationally to be more of a buyer's market. Not so much the case in the Boston area," Boston Business Journal real estate reporter Grant Welker told WBZ-TV's Courtney Cole.

Housing market in Massachusetts' gateway cities 

Where might the next hot housing markets pop up in Massachusetts? Welker predicts that the state will see gateway cities "land a lot of residents." Gateway cities are defined as communities with a population between 35,000 and 250,000, with median household income that is below the state average.

"Closer to Boston, that means a place like Revere or Chelsea. That means Brockton or Lowell or Lawrence," Welker said. "These are places that are relatively affordable."

Welker also highlighted cities like Fall River and New Bedford that are connected to Boston via the new South Coast Commuter Rail line, as well as central Massachusetts communities.

"It's places like Worcester or even Fitchburg that could give people that option to stay in the area, whether their job or family or both is keeping them local, but to see prices that are much more affordable than what we're seeing, especially inside [Route] 128," Welker said.

Why are homes so expensive in Massachusetts?

The median single family home sale price in Massachusetts was $630,000 for April 2025, up 3.3% from the previous year, according to .

Welker said tariffs, mortgage rates and economic uncertainty mean fewer people are willing to sell their house. Another problem is inventory.

"We're not building housing as quickly as we need to or even as quickly as we used to only a couple years ago," Welker said. "We need tens of thousands of new residential units. we're not getting them, and that's just keeping the supply way too strained."

He said that on the bright side, state and local governments are prioritizing housing through initiatives like the MBTA Communities Act and a recent announcement by Gov. Maura Healey to develop state-owned land for housing.

"It's become such a critical issue that it can't help but rise to high up on the priority list for so many officials," Welker said. 

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