UMass Donahue Institute Study Shows Boosts in New Jobs, Economic Activity with Governor’s New Affordable Homes Act

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A new UMass Donahue Institute economic impact study released on Jan. 25 shows the Healey-Driscoll Administration’s Affordable Homes Act, which proposes to produce tens of thousands of new homes across Massachusetts, would also stimulate nearly $25 billion in economic activity and create about 30,000 jobs while generating additional tax revenue for the state and municipalities. The study also showed economic activity spurred by the Affordable Homes Act could also allow the state to recoup $750 million in tax revenues over five years.

Massachusetts Governor Maura Healey first mentioned the study during her State of the Commonwealth speech on Jan. 16 and again during her testimony at the State House on Jan. 19. 

“We know the path to economic success: it starts with housing,” Healey said. “The results of the Donahue study underscore that. Hardworking Massachusetts families need access to housing they can afford. The production of that housing creates jobs and can be a driving force for our economy. The Affordable Homes Act is the bold action we need now to build a stronger Massachusetts.” 

Mark Melnik, director of the Donahue Institute Economic and Public Policy Research (EPPR) group that conducted the study, said “Improving access and affordability of housing is central to improving the state’s economic competitiveness and in improving the quality of life for low and middle-income residents around Massachusetts. These potential investments in housing also create a significant workforce development opportunity in the building trades to meet the labor demands in the coming years.” 

EPPR provides research and analysis to projects that monitor, examine, and forecast economic and demographic changes. More information is available on the UMass Donahue Institute EPPR website.