Boston Doling Out $50K to Select Multifamily Buyers

Boston is trying a different tack to help first-time homebuyers: assisting multifamily purchases.

City officials unveiled a Co-Purchasing Housing Pilot Program offering up to $50,000 in financial assistance to help multiple households combine resources to buy multifamily homes together, Realtor.com reported. The initiative aims to address the city’s housing crisis.

“Boston’s housing market has become increasingly inaccessible for middle-income families, particularly those from historically marginalized communities,” said Alexander Sturke, director of communications for the Mayor’s Office of Housing, told Realtor.com.

Households earning up to 100 percent of the area median income can receive $50,000, while those earning between 101 and 135 percent of the AMI qualify for up to $35,000.

The assistance comes in the form of a zero-interest loan of up to 5 percent of the household’s share of the purchase price, helping cover down payments and closing costs. Buyers don’t need to repay the loan until they sell, transfer or refinance the property.

All participating households must be first-time homebuyers and use the same lender. Buyers don’t need to live in Boston ahead of participating, but must move into the property they purchase within 60 days of closing. The program specifically targets residents seeking homes to live in rather than investment properties. All properties must sit within Boston city limits.

“Instead of just having investors be the only ones who could buy a triple-decker and then rent it out, or ‘condo-ize’ it, now, families will be able to own their piece of it,” Mayor Michelle Wu previously told WBUR’s Morning Edition.

How much fifty grand moves the needle for prospective buyers remains to be seen. Last month, multifamily properties in the city had a median list price of $1,650,000, about $450,000 higher than in 2020, when interest rates were significantly lower.

But that still may be cheaper than buying a single-family home, even before considering pooling resources together from multiple households; the average single-family home in Boston cost more than a multifamily home last month.

Boston had 192 multifamily homes for sale last month. Properties typically spent 26 days on the market, according to Realtor.com economic data.

— Holden Walter-Warner