STRUGGLES ABOUND for homeowners in Gateway Cities, including cost burdens and tough market competition, yet overall satisfaction remains high, according to a new survey of 850 Massachusetts homeowners.

Respondents both in and outside of Gateway Cities largely reported that they were satisfied with being homeowners. But cost pressures were more pronounced in Gateway Cities as housing affordability remains the single biggest financial pressure point for Massachusetts residents, highlighting a clash between how people feel about homeownership and what it means for their finances.

Those who own homes in the state’s 26 post-industrial era cities were more likely to skip urgent home repairs due to cost, be at risk of foreclosure, buy in neighborhoods that were not their first choice, and say that homeownership has hurt their financial stability. The poll was conducted by the MassINC Polling Group, which is part of the same organization that publishes CommonWealth Beacon.

“Where we see a lot of struggle for Gateway City homeowners is less around the buying of the home, though that is present, and more around preserving the home,” said Courtney Brunson, director of economic equity initiatives at The Boston Foundation. “That’s where there are issues across the board, but it’s disproportionately higher for non-white, lower-income folks living in Gateway Cities.”

“Even though they may have lower home prices overall, it is still incredibly expensive and out of reach for the people who are trying to purchase within Gateway Cities,” she added.

Over the last decade, the homeownership rate for residents who live in Gateway Cities has hovered around 50 percent, according to the MassINC Policy Center’s 2025 Gateway Cities Housing Monitor. The statewide rate has also been flat at around 63 percent.

Less than half of all Gateway City residents own their homes, and the number of rental units is increasing faster than ownership units. From 2013 to 2023, growth in renter-occupied housing in Gateway Cities outpaced growth in owner-occupied housing by 4,200 units. Some Gateway Cities have been described as “ownership deserts” — places where renting is common and opportunities for homeownership are scarce.

Half of respondents in the Gateway Cities said competition with other buyers was a barrier they faced while purchasing their home while 37 percent of those outside the Gateway Cities said the same.

Although homeownership rates for people of color are rising in the Gateway Cities, white residents continue to make up a large majority of owners. Black and Hispanic households have homeownership rates that are 23 percentage points and 32 percentage points lower than white households respectively.

While a majority of poll respondents said owning a home has helped them financially, that enthusiasm is slightly muted among those in the Gateway Cities — 62 percent of whom said it has helped and 24 percent of whom said it has hurt their financial stability. Comparatively, 75 percent of non-Gateway City homeowners said it has helped while just 13 percent said it has hurt.

Yet satisfaction with homeownership is high, mainly driven by intangibles like pride and control over one’s living space, according to the poll. Nearly half of Gateway City respondents said the ability to pass their home on to their children as an asset was a benefit of being a homeowner, compared to nearly a third of non-Gateway City respondents who said the same.

“They still feel like this is their home — it’s a stable household that helps anchor their family, so there’s still benefits outside of financial satisfaction,” said Elliot Schmiedl, director of homeownership at the Massachusetts Housing Partnership. “But it’s more of a daunting challenge for folks under 100 percent area median income and for non-white households, and it has to do with costs.”

Among the small percentage of respondents who said they were not satisfied with owning a home, cost was the top reason cited by 67 percent of Gateway City respondents and just 27 percent of non-Gateway City respondents. Meanwhile, 58 percent of homeowners in the Gateway Cities said high prices were a barrier they faced when purchasing their home compared to 50 percent of non-Gateway City buyers.

“Owners in the Gateway Cities are more likely to have bought their home more recently during this really bad market,” said Rich Parr, vice president of the polling group.

Schmiedl said dissatisfaction with home prices could also be because of the “promise” of affordability in the Gateway Cities.

“Most people are willing to pay more to live near Boston. There’s an acceptance there. But the Gateway Cities were the places where you were supposed to be able to go and find something that was affordable,” Schmiedl said. “Those homes are now half a million. We’ve watched that affordability dwindle.”

In the past 12 months, 40 percent of Gateway City owners said they have had to skip or delay paying for other essential needs in order to pay their mortgage or other housing bills compared to 26 percent of non-Gateway City owners.

Affordability is the top factor in choosing a location, cited by 75 percent of all buyers. Because of cost, less than half of homeowners outside the Gateway Cities and less than a third of homeowners in the Gateway Cities said they bought in their first-choice neighborhood.

Buyers may be going to the Gateway Cities because they are able to find more affordable home options, Brunson said, but that might not have been their first choice.

Gateway City homeowners were slightly more likely to say they are considering moving in the next five years than non-Gateway City owners. More than 40 percent said they want to live in a better neighborhood, which was nearly twice as high as those outside the Gateway Cities. They were also more likely to consider moving to be in a better school district, to save money, and because their home is too old and needs too many repairs.

Gateway City owners are more likely to reside in homes built before 1980, according to the poll. Meanwhile, 45 percent of Gateway City owners said they have delayed or avoided urgent home repairs due to cost compared to 32 percent of those outside the Gateway Cities.

“Those are the sorts of things that can add up over time and could put you in a difficult position down the road,” Parr said. “If people want to sell at some point, it becomes difficult to get out of your home because you haven’t been able to keep it up.”

Brunson said most state and federal resources, especially following the pandemic, have been geared towards helping disadvantaged populations become homeowners. But very few resources have been directed toward helping them stay in their homes long term or providing home preservation assistance.

Many first-time home buyers are purchasing near the lower end of the market, Schmiedl said, and many of those homes are not move-in ready.

“If you have to replace major things and pay thousands of dollars to do so, you’re putting your ability to pay your monthly mortgage at risk,” he said. “These folks who are buying new condos in Boston aren’t thinking about repairs because they don’t have any.”

Many homes in Greater Boston are also deed-restricted, Schmiedl said. Those who own a deed-restricted home – with legally binding conditions that limit how the property can be used, priced, or resold – report a range of financial security benefits, yet just nine percent of Gateway City homeowners said their current home is deed restricted or affordable compared to 58 percent of owners outside the Gateway Cities.

Although most homeowners have never been at risk of foreclosure, 21 percent of Gateway City owners and nine percent of owners outside of the Gateway Cities have, according to the poll.

“The fact that that number is so high is reflective of all of these other factors related to the inability to address home repairs and pay your mortgage,” Brunson said. “At some level, the opportunity cost of paying for your basic needs versus your mortgage means that you have to make difficult decisions that put you more at risk for foreclosure.”

Foreclosure risk was also highest among Black homeowners, as well as those with household incomes below $50,000. Gateway City residents are more likely to be Black and have lower incomes, making it difficult to determine what demographic is driving foreclosure risk in the poll, Parr said.

Ultimately, tighter margins and unique cost burdens help explain why Gateway City respondents are reporting more challenges associated with homeownership, including foreclosure risk, Schmiedl said.

“A lot of people are just able to make that home purchase. They’re scraping together closing costs,” he said. “It doesn’t leave a lot of room for error, and it can be a perilous situation for some.”