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Data: U.S. Census; Note: Unadjusted estimate of privately owned units of any size; Chart: Axios Visuals

Boston significantly trails the national average for building new homes, showing that Massachusetts has a long way to go to increase stock and confront its housing crisis.

Driving the news: 26.5 new homebuilding permits per 100,000 residents were issued in Boston in May 2023 —  roughly half the nationwide rate of 42.3 permits per 100,000 residents.

That's according to a new analysis of Census Bureau data from Axios' Kavya Beheraj and Alex Fitzpatrick.

Why it matters: A post-pandemic nationwide housing shortage is keeping prices high and few places are more expensive than Boston. Massachusetts needs to ramp up construction if the state is ever going to have enough stock for the population.

Recent estimates from Freddie Mac indicate the U.S. is short about 3.8 million housing units for rent or purchase, Axios' Emily Peck reports.

A bump in new home construction could bring prices down.

Zoom in: Boston's 2023 rate is up slightly from 24 permits per 100,000 people in May 2020, but the national rate has increased far more over the same time.

Of Boston's 1,303 total permits in May 2023, 916 were issued for buildings with five or more units, 303 for single-family homes and 54 for buildings with 2-4 units.

Data: U.S. Census; Note: Unadjusted estimate of privately-owned units of any size; Map: Kavya Beheraj/Axios

By the numbers: In May 2023 139,600 total permits were issued across the U.S. — the majority of which were for single-family homes.

Meanwhile: Other cities are seeing a significant explosion in new home construction as a post-pandemic reality takes hold.

In Raleigh, for example, 138 new permits per 100,000 residents were issued in May 2023, up from 71.7 in May 2020.

Ample housing opportunities is one reason why southern and western states have an economic advantage over us.

State of play: While many newly built homes have been targeting (and thus priced for) relatively wealthier buyers, homebuilders are starting to focus on more affordable projects for first-time buyers, per Axios' Matt Phillips.

What they're saying: "It's a renewed focus, given the lack of inventory," Robert Dietz, chief economist at the National Association of Home Builders, told Matt.

"First-time buyers are going to play a key role in the order expansion for homebuilders going forward."

Yes, but: "There's little sign of a Levittown-style surge of modest-home construction to magically solve the inventory problem any time soon," Matt writes.

Plus, even if costs come down, mortgage rates remain relatively high.

Boston trails the nation in home construction

Boston saw roughly half the nationwide homebuilding rate in May.

Real estate

Boston significantly trails the national average for building new homes, showing that Massachusetts has a long way to go to increase stock and confront its housing crisis.Driving the news: 26.5 new homebuilding permits per 100,000 residents were issued in Boston in May 2023 — roughly half the nationwide rate of 42.3 permits per 100,000 residents.

Real Estate

Latest news on Wall Street, Corporate America and financial regulation.

Business

Data: U.S. Census; Note: Includes women ages 16 to 50; Chart: Kavya Beheraj/Axios

The percentage of Boston metro area-women who recently gave birth and remain in the workforce has been slowly shrinking since 2019 but remains well above the national average, per new census data.

Why it matters: Motherhood often knocks women out of the labor force, at least temporarily — often slowing their career and earnings growth and contributing to the gender pay gap.

By the numbers: 76% of Boston-area women who gave birth in the previous 12 months were participating in the labor force as of 2022, per the latest American Community Survey data.

That's compared to 76.2% in 2021, and 77.5% in 2019.

Yes, but: Participation remains higher than in 2010, when 69.5% of new mothers were participating in the labor force.

The big picture: Nationally, the percentage of women who recently gave birth and are working reached a decade-plus high-water mark last year of 66.6%.

That's compared to 66.5% in 2021 and up from 61.6% in 2010.

What's happening: While remote and flexible work is enabling new moms (and some new dads) to juggle both parenting and their careers, the astronomical cost of child care is hampering parents' ability to do so.

Massachusetts is the most expensive state for child care, with full-time care costing an average of $16,781 a year, per Child Care Aware of America, an advocacy organization.

Inadequate child care access is costing Massachusetts an estimated $2.7 billion in lost earnings for employees, additional costs and productivity, according to a 2022 report from the Massachusetts Taxpayers Foundation.

Threat level: Vital pandemic-era federal funding for child care centers cut off last weekend, which experts expect will deepen the child care affordability crisis as supply is further outstripped by demand.

In the Bay State, 1,809 child care centers looking after more than 56,000 children may close after the funding runs out, according to one widely cited estimate from national think tank The Century Foundation. 

The group predicts that could amount to $219 million in lost earnings from Massachusetts parents forced to cut back working hours or drop out of the workforce altogether.

What we're watching: Lawmakers sent a tax relief package that increases credits for taxpayers with children and dependents to Gov. Maura Healey's desk last week.

76% of new Boston moms are working, down from a 2019 high

Motherhood often knocks women out of the labor force.

Labor Market

The percentage of Boston metro area-women who recently gave birth and remain in the workforce has been slowly shrinking since 2019 but remains well above the national average, per new census data.Why it matters: Motherhood often knocks women out of the labor force, at least temporarily — often slowing their career and earnings growth and contributing to the gender pay gap.

Massachusetts kindergarten students are arriving at school exempt from the state's vaccine requirements at the same rate as about a decade ago.

The Bay State is bucking a national trend that's seen a spike in exemptions for young students amid the public debate over vaccine efficacy.

Driving the news: 1.4% of all kindergartners across Massachusetts were granted exemptions to required vaccines in the school year ending this past spring, the same rate as in 2012, per the latest state health statistics and CDC data.

That's a 40% increase over the 2021-2022 school year when only 1% of kindergarteners received exemptions.

Why it matters: Vaccinations reduce the spread of childhood illnesses — some potentially fatal — that once plagued the country, such as polio.

While children are generally required to get a number of vaccinations before attending public school, exemptions can be given for medical reasons and due to sincerely held religious views.

Studies have found an increased risk of infection from vaccine-preventable diseases among exempt children.

What we're watching: Beacon Hill lawmakers are considering legislation to completely eliminate the state's religious exemption option and standardize how schools report exemptions to the state.

All proposals would protect the existing medical exemption option.

Zoom out: The nationwide median kindergarten vaccine exemption rate was rising even before the COVID-19 pandemic, increasing from 1.4% in 2012 to 2.6% in 2019.

It has stayed at 2.5% or higher since 2020, coming in at 2.7% in 2022, the latest year for which data is available.

As of 2022, Idaho (9.8%), Utah (7.4%) and Oregon (7%) had the highest median kindergarten vaccination exemption rates.

Mississippi, New York and West Virginia were tied for the lowest, at 0.1%.

Between the lines: When it comes to the measles, mumps and rubella (MMR) shot, 88% of Americans said the benefits outweigh the risks, compared to 10% who feel the opposite, per a recent Pew survey.

Yes, but: Just 70% of Americans now say healthy kids should be vaccinated as a requirement to attend public school, Pew found — down from 82% in the pre-pandemic era.

There's a significant partisan split, with 85% of Democrats agreeing with such a requirement compared to 57% of Republicans.

Massachusetts kindergarten vaccine exemption rate steady since 2012

The Bay State is bucking a national trend.

Massachusetts

Massachusetts kindergarten students are arriving at school exempt from the state&#x27;s vaccine requirements at the same rate as about a decade ago.<ul><li>The Bay State is bucking a national trend that&#x27;s seen a spike in exemptions for young students amid the public debate over vaccine efficacy.</li></ul>

COVID

Health

Education

Data: U.S. Census; Map: Kavya Beheraj/Axios

Boston ranks 86th among large metro areas for new business applications, even though it has the country's 11th-largest population.

Driving the news: Boston saw 11 new business applications per 1,000 residents in 2022, falling below the national average and well below Miami, Orlando, Charleston and other cities that have seen recent population growth.

That's down from 11.8 new business applications per 1,000 residents in 2021, per new Census Bureau and IRS data, Kavya Beheraj and Alex Fitzpatrick report.

Why it matters: New business applications are an important measure of an area's perceived economic health.

The big picture: Just over 5 million new business applications were filed nationwide in 2022, or 15.1 for every 1,000 residents.

Zoom in: Worcester and Springfield’s metro areas had even lower levels of new business activity.

The Worcester metro area had 8.4 new business applications per 1,000 residents, and Springfield had 8.1, both down from their 2021 totals.

Between the lines: Many of the hottest spots for new business applications also have booming populations (remember the sunny states that have been eating Massachusetts' economic lunch?).

Yes, but: A filed application is no guarantee of a healthy, thriving business to follow — but at the very least it's a sign of economic optimism.

Boston metro's new business activity among lowest in U.S.

Boston ranks 86th despite having the 11th-largest population.

Boston ranks 86th among large metro areas for new business applications, even though it has the country&#x27;s 11th-largest population.Driving the news: Boston saw 11 new business applications per 1,000 residents in 2022, falling below the national average and well below Miami, Orlando, Charleston and other cities that have seen recent population growth.

News

Data: First Street Foundation; Map: Kavya Beheraj/Axios

Hundreds of thousands of properties in the Boston metro area could face higher insurance premiums or policy non-renewals this year due to the risk of high winds, and/or flooding, according to a new analysis. 

Driving the news: The higher premiums are expected to affect more than 26% of Boston metro area properties, especially along the coast, per climate data nonprofit First Street Foundation.

20% of Boston metro area homes could face an insurance rate increase or non-renewal because of wind, but flooding is also a concern.

What's happening: Insurers are changing how they factor climate and extreme weather risks into premiums. Others are suspending coverage altogether.

The changes come months after FEMA updated its flood insurance pricing model for the first time since the 1970s, leading to higher premiums that are more reflective of today's flooding risks, says Jeremy Porter, First Street's head of climate implications research.

Nationally, 8 million households are in FEMA flood zones, but only 4.7 million have active flood insurance policies.

Zoom in: More than 400,000 Massachusetts residents live in a flood zone, according to the Massachusetts Department of Public Health's Bureau of Climate and Environmental Health.

That number is likely to increase as more portions of the state experience more heavy rain and other extreme weather events.

Threat level: In Massachusetts, there are more than 114,000 properties that have a 100-year flood risk, according to First Street, but don't appear in FEMA's flood zone and likely don't have flood insurance, Porter tells Axios.

He says the discrepancy exists in part because FEMA does not account for the effects of heavy rain or overflowing small waterways, a common cause of flooding in the Northeast.

The big picture: Millions of properties nationwide could see higher premiums because of these climate- and weather-related risks, per estimates from First Street.

Nearly 24 million U.S. properties may face higher premiums because of the risk of potential wind damage, about 12 million because of the risk of flooding, and about 4.4 million due to wildfire risk.

Wind, flood risk could spike Massachusetts insurance rates

The higher premiums are expected to affect more than 26% of Boston metro area properties.

Hundreds of thousands of properties in the Boston metro area could face higher insurance premiums or policy non-renewals this year due to the risk of high winds, and/or flooding, according to a new analysis. Driving the news: The higher premiums are expected to affect more than 26% of Boston metro area properties, especially along the coast, per climate data nonprofit First Street Foundation.

Kavya Beheraj

Featured stories

Wind, flood risk could spike Massachusetts insurance rates

76% of new Boston moms are working, down from a 2019 high

Massachusetts kindergarten vaccine exemption rate steady since 2012

Boston trails the nation in home construction

Boston metro's new business activity among lowest in U.S.