T
he median sales price for a single-family home in Barnstable County has reached $802,500, making homeownership unaffordable for many year-round residents. The county's median household income is around $95,000, highlighting the stark contrast between housing costs and local earnings. Even "affordable" towns like Bourne and Yarmouth have seen median prices rise to $640,000.

    Affordability has become a relative term on Cape Cod, with only a handful of affordable home mortgages being supported annually by organizations offering below-market interest rates. This is down from as many as two dozen in previous years, with most successes coming from affordable housing lotteries rather than market-rate sales.

    The combination of high prices, limited inventory, and an increase in cash buyers has created a competitive environment where first-time or moderate-income buyers struggle to compete. According to Todd Machnik, president of the Cape Cod and Islands Association of Realtors, 43% of all home sales in June were cash purchases.

    Locals are missing out on homes because they're competing against people who don't need to finance as much, said Machnik. The affordability crisis isn't just about sticker shock; it's also about shrinking supply. There are only around 1,100 active listings in Barnstable County, or about half of what would be considered healthy.

    Homes that aren't near the coast may linger on the market slightly longer, but the most desirable properties are still snapped up in days and often above asking price without contingencies. "You just can't compete," said Alisa Magnotta, CEO of the Housing Assistance Corporation.

    The Cape's year-round housing inventory has been eroded by second-home demand and the rise of short-term rentals. Platforms like Airbnb and VRBO have contributed to this trend, as homeowners realized they could make substantial money renting to vacationers. This shift has resulted in a loss of access to existing inventory, making it even harder for locals to find affordable housing.

    Data from the Cape Cod & Islands Multiple Listing Service underscores the shift, with towns like Provincetown and Chatham continuing to tilt luxury. However, there are pockets of affordability to be had: Dennis saw the lowest median condo sales price for all of the Cape and Islands year to date at $278,950.

    Affordability programs don't always reach far enough, and expanding them would require substantial funding and buy-in from multiple municipalities. Some progress is visible, such as the Downtown Hyannis zoning revision in 2023, which allows more density in the district and has hundreds of units in the pipeline.

    Cape officials and housing advocates agree that solutions need to be both local and regional, encompassing zoning, infrastructure, and creative use of existing housing stock. Programs like Lease to Locals are gaining traction, and individual action is also urged: "If you're a second homeowner, build an accessory dwelling unit on it and rent it year-round," said Magnotta.

    Time is a factor, as more locals are priced out or displaced, resulting in dwindling classrooms, shops, and emergency services. Collective action is needed to bring positive change, emphasized Magnotta. "It's a shared value that we've had on the Cape for a long time. It's part of who we are."