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Affordable housing on Nantucket, MA, has long felt out of reach for many who live and work on the island year-round. Sky-high prices, limited inventory, and an overwhelming surge of seasonal demand have pushed out locals and made stability a luxury.
But now, the Massachusetts island is making bold moves to flip the script. With new housing developments, financial assistance programs, and a first-of-its-kind deed restriction initiative, Nantucket is aiming to turn the tide, as reported by the Nantucket Current.
Local officials say it’s all part of a long-term effort to make the island livable—not just for summer, but for good.
The Nantucket Select Board all agreed to move forward with what’s being called New Downtown. It’s a development that would add 32 units on Sparks Avenue. Eight of the units will be restricted to 80% of the area median income, but all units are eligible to be part of the Subsidized Housing Inventory list, according to the Current.
Existing structures on the site were demolished earlier this year.
(Realtor.com)
A plan to create affordable housing for the island
By the end of 2025, Nantucket expects to reach 8% of its 10% affordable housing goal under the state’s Chapter 40B law—a significant milestone for a community long grappling with the squeeze between seasonal demand and year-round needs.
“Year-round housing is achievable for everyone who works on the island, and the various tiers of affordable housing make year-round living comfortable, stable, and inclusive,” according to the town’s website. “Our seasonal workforce is able to find safe and secure housing. Homes on Nantucket are well-constructed and integrated into the character of the island.”
Under Chapter 40B, communities in Massachusetts are encouraged to ensure at least 10% of their year-round housing stock is affordable to low- or moderate-income residents. According to the 2020 U.S. Census, Nantucket has 6,180 year-round housing units—meaning it needs at least 618 affordable homes to comply. The town currently sits at 6.55%, with a projected increase to 8% by the end of next year.
“I feel that we’ve been very focused…to continue to move along projects, and we haven’t stopped to really showcase what we’ve done and how many heads in beds we have created,” Kristie Ferrentella, Nantucket’s housing director, said during a recent presentation to the Select Board, according to the Current.
Ferrentella highlighted a range of efforts to grow the island’s Subsidized Housing Inventory, including new developments on vacant land, closing-cost assistance programs, and initiatives that support the creation of housing covenants.
“This is amazing, and it’s not only what has been accomplished, but there are so many new ideas, so many new programs, tools in the toolbox,” said Select Board member Brooke Mohr, as per the Nantucket Current. “Every time we talk about housing, I say the same thing. It’s just amazing to me how much progress we’ve made, and I’m really proud of us as a community for focusing on making sure our year-round residents have safe, stable, and attainable housing.”
Many years in the making
One of the most innovative strategies still to come is a deed restriction program that will allow the town to pay homeowners in exchange for designating their homes as year-round affordable housing. It’s part of a broader effort to preserve existing inventory while boosting access for residents.
“This has been a work in progress and a labor of love over the last couple of years,” Ferrentella said. “Stay tuned, because that will be released shortly.”
These initiatives build on years of planning. In 2021, Nantucket released a housing production plan that diagnosed many of the island’s structural challenges—from a lack of housing variety to the rise of the seasonal rental market.
The plan identified limited housing diversity as a core issue: Nantucket’s housing stock is largely composed of single-family detached dwellings, some of which include second cottages or dwellings on the same lot, but very few are true multifamily homes. That means fewer options for working individuals, couples, and lower-income households seeking smaller or more affordable units.
There’s also a geographic concentration problem. Most housing types beyond detached homes are clustered near the center of the island, creating bottlenecks for those living and working outside the core.
In addition, the town’s relatively new housing stock—nearly 60% of homes were built from 1980 to 2009—hasn’t necessarily translated to affordability. Much of that growth has been driven by seasonal demand.
Officials believe the number of seasonal-use units has grown faster than overall construction, which has made it harder for year-round residents to stay rooted. As a result, high housing cost burdened both renters and homeowners, many of whom spend more than 30% of their income on housing.
With progress now accelerating through creative programs and growing public investment, local leaders say Nantucket is finally gaining ground in making the island livable—not just visitable—year-round.