Affordable vs. “affordable”

The term Affordable Housing can be used in a couple of ways. There is Affordable rental housing that receives government subsidies, such as Pinewoods in Stockbridge.  To qualify, households must meet certain income limits based on the median incomes of the region’s population, as well as family size. The bigger the household the more money they can make and still qualify for a subsidy. 

The Massachusetts Housing Partnership has published a chart showing the income limits required to qualify for housing subsidies in the various Massachusetts counties in 2025.  

Then there is “affordable" housing in the generic sense, the way we might use it in a conversation bemoaning the high cost of housing. Most housing in Stockbridge (and many other places) is just not affordable for the average household, or even relatively well-to-do households.

Building New Homes

For example, many new homes these days are being built for about $500 per square foot. At that rate, even a modest 3-bedroom, 2-bath home of 1200 square feet would cost $600,000.

With a down payment of $30,000, or 5 percent, a $570,000 mortgage at current interest rates would cost about $3,400 a month in principal and interest, and another $450 in taxes and insurance.  (Private Mortgage Insurance, if required, would add to that total).

How many people in Berkshire County can save even that $30,000 down payment these days? 

The above example is for newly built homes. The cost of existing properties has also skyrocketed so that the $600,000 price cited above might not be enough to purchase a similar home. 

Rental Housing

For renters, the U.S. Department of Housing and Urban Development recommends that households should spend no more than 30 percent of gross income (before taxes) on rent. Above that amount people may not have enough to meet other expenses. Research for the Housing Production Plan showed that many Stockbridge households are spending more than 30 percent per month, with some paying 40 or even 50 percent.

The housing market in Stockbridge has been distorted by surging demand during the COVID pandemic. Also, many home buyers in Stockbridge come from the New York City area where incomes are much higher, and people can afford to pay prices that are way beyond the means of people who live and work in the Berkshires. 

Beyond that, home purchases for short term rentals has put additional pressures on the local housing market.

That’s the backdrop as the Stockbridge Affordable Housing Trust seeks ways to develop new units of housing for low and moderate income residents and would-be residents.