Vacant Units, Rising Rents: What’s Really Causing Boston’s Housing Crisis?

A quick search shows something hard to ignore: there are far more vacant housing units than people experiencing homelessness in Boston—though the exact numbers vary depending on the source. Broadly, recent estimates suggest tens of thousands of housing units sit vacant across the state, while the Greater Boston homeless population is in the low to mid thousands.

And this isn’t just a Boston issue—it reflects a broader national pattern. Across the U.S., there are millions of vacant housing units, even as hundreds of thousands of people experience homelessness each year.

So if the problem isn’t simply a lack of housing, what is it?

A closer look suggests that many of these vacant units are tied up in luxury condos and high-end apartment developments. There’s no shortage of new luxury buildings going up across Boston. But when it comes to affordable housing, the pace tells a different story. In recent years, Boston has added only a few thousand income-restricted units annually—far below what’s needed to meet demand, according to city housing reports.

The result? A widening gap between what’s being built and what people can actually afford.

And that gap has real consequences.

Displacement is becoming more common. At Diversity, we’ve heard it directly from customers and consignors—people leaving the city not because they want to, but because they have to. Some are relocating to Worcester, others to southern New Hampshire—places where the cost of living is simply more manageable.

From a developer’s perspective, the math may be part of the issue. Land in and around Boston is expensive. Construction costs are high. To make a project financially viable, building luxury housing often offers the most reliable return on investment.

You can see a similar pattern in the suburbs—new construction skewing toward larger, higher-priced homes rather than smaller, more attainable options under 2,000 square feet.

So who’s responsible?

Is it the market? Policy? Developers? Zoning? Or some combination of all of the above?

One thing is certain: Boston is a city with a distinct culture, history, and energy that’s worth preserving. As residents, business owners, and community members, we all have a stake in what it becomes.

The question is—what do you think the real problem is and what can we do about it?