Housing Nantucket and consultant EBP presented results of a housing needs assessment to the Nantucket Affordable Housing Trust on Oct. 21, reporting a substantial shortage of year‑round rental housing and rising cost burdens among local households.

The assessment, presented by Anne Cuspa of Housing Nantucket and a consultant identified as Brett of EBP, compared current housing supply, rents and sale prices with household incomes and found dramatic price increases since 2015 that have outpaced income growth.

Why it matters: The study underpins the town’s update of its Housing Production Plan (HPP), a document the presentation said is critical to maintaining “safe harbor” under Chapter 40B. The data are intended to guide local decisions about the scale and mix of affordable and workforce housing the town should pursue.

Key findings reported by the presenters include: median home prices rose about 140% over the last decade, and the presentation said the income required to afford the median home would now exceed $1.4 million; rents have increased roughly 70% since 2015; and year‑round household incomes rose only about 9% in the same period. The presenters said those changes contributed to a significant decline in year‑round rental units and a corresponding increase in homeownership share.

The presenters reported roughly 41% of Nantucket households are either cost‑burdened (paying more than 30% of income for housing) or severely cost‑burdened (50% or more). Overcrowding—more than one person per room—was markedly higher on Nantucket than state or national averages, particularly among renters.

The assessment used public data (U.S. Census Bureau and HUD) and proprietary Claritas data that the presenters said allowed household income estimates above the Census truncation for high‑income communities. The analysis estimated about 3,060 owner households and roughly 1,150 renter households fall within low, moderate or middle income brackets used for the study (based on HUD area median income percentages). The presenters said about 850 renter households face affordability problems at current fair‑market rents and that many renter households are effectively priced out of homeownership at all but the highest income brackets examined.

The report outlined multiple ways to size the need. For example, bringing Nantucket’s cost‑burden rates down to Massachusetts or national levels would require between about 590 and 765 additional affordable units, the presentation said. The consultants also noted that meeting the town’s stated 600‑unit HPP goal for 2027 would mainly address certain low‑income needs but, because not all units would be affordable at the lowest income tiers, would not fully eliminate unmet demand.

Trust members asked for additional analysis of owner households that are cost‑burdened at lower income levels—who they are and when they entered the housing market—so the town can consider strategies to keep long‑time owners housed and to target resources. Chair Brian Sullivan and other members noted the island’s seasonal market dynamics and competition with high‑net‑worth buyers as distinguishing challenges.

The presenters concluded by saying the island will likely need a mix of new units and direct financial assistance to reduce overcrowding and cost burden and to help employers recruit and retain year‑round staff. The full written report, methods and data sources were made available in the meeting packet, and the presenters invited follow‑up questions and further demographic analysis.

Sources and attribution: Direct statements and figures in this article are taken from the presentation delivered to the Nantucket Affordable Housing Trust by Anne Cuspa (Housing Nantucket) and Brett (consultant, EBP) during the Oct. 21 meeting. Specific numbers quoted in the body were reported aloud in the presentation.