By Tiffany Williams –
BOSTON — Massachusetts may be one of the wealthiest states in America, but a newly released report from Treasurer Deborah B. Goldberg’s Office of Economic Empowerment suggests that prosperity remains unevenly distributed across the Commonwealth, leaving many residents struggling with housing costs, financial insecurity, wage disparities and limited access to financial education.
The 2026 Massachusetts Financial Wellbeing Scorecard, released by the Office of Economic Empowerment, provides one of the most comprehensive examinations to date of the financial realities facing residents throughout the state. Drawing on survey data, research studies and economic indicators, the report presents a detailed picture of both the strengths and challenges shaping economic wellbeing in Massachusetts.
While the Commonwealth continues to lead the nation in several economic categories, including median household income and household wealth, the report concludes that many residents remain under significant financial pressure despite living in one of the nation’s strongest economies.
“Our state is home to a lot of wealth, but our economy still isn’t working equally for everyone,” said Treasurer Goldberg, who founded the Office of Economic Empowerment in 2015. “This Scorecard highlights the challenges many residents face and our ongoing commitment to expand economic stability, opportunity, and security for people across Massachusetts.”
According to the report, Massachusetts households earn just over $100,000 annually on average, making it the state with the highest median household income in the nation. The Commonwealth also reports a median household net worth exceeding $307,000, placing it among the wealthiest states in America.
However, those headline figures tell only part of the story.
Researchers found that substantial racial, ethnic and gender disparities continue to shape financial outcomes across Massachusetts. The report notes that many communities have not shared equally in the state’s economic success, resulting in significant differences in earnings, wealth accumulation and long-term financial security.
One of the most striking findings involves income disparities among Latino households. Nationally, Latino households earn approximately 82 cents for every dollar earned by White households. In Massachusetts, however, Latino households earn only 59 cents for every dollar earned by White households, creating one of the largest income gaps in the country. Black households continue to face significant economic challenges as well, reflecting broader disparities in access to wealth-building opportunities.
The report also highlights persistent gender-based wage gaps. Women in Massachusetts earn approximately 84 cents for every dollar earned by men. While that figure performs somewhat better than national averages, the disparities become substantially larger when race is considered. According to the report, Black women earn approximately 59 cents for every dollar earned by non-Hispanic White men, while Latina women earn only 55 cents on the dollar.
Researchers noted that these disparities extend far beyond annual income. Lower wages often translate into reduced retirement savings, lower rates of homeownership, fewer investment opportunities and diminished long-term wealth accumulation, creating financial disadvantages that can persist across generations.
Income inequality remains another major concern identified in the Scorecard. Massachusetts consistently ranks among the states with the highest levels of income inequality in the nation. The report notes that between 2009 and 2015, the top one percent of earners in Massachusetts received 58 percent of all income growth during that period.
Nationally, the report states that the top one percent of earners now make more than 18 times as much as the bottom 90 percent of wage earners. Researchers argue that such disparities create challenges not only for individual households but also for broader economic stability and social mobility.
Although Massachusetts maintains a poverty rate below the national average, poverty remains a significant issue for many residents. Nearly 10 percent of residents live at or below the federal poverty level. The burden is not shared equally across demographic groups.
According to the report, Hispanic residents experience poverty rates exceeding 20 percent. Native American residents face poverty rates of approximately 19 percent, while Black residents experience poverty rates above 17 percent. Asian residents face poverty rates of approximately 11 percent. Geographic disparities are also evident, with some counties experiencing significantly higher poverty rates than others.
Housing affordability emerged as one of the most significant concerns throughout the report.
Massachusetts now has a median home value of approximately $550,000, placing it among the most expensive housing markets in the United States. Only Hawaii, California and Washington, D.C. report higher median home values. While rising property values have benefited many homeowners, the report notes that they have simultaneously created substantial barriers for prospective buyers attempting to enter the housing market.
The affordability challenges are particularly pronounced in Greater Boston, where the median sale price for a single-family home has risen above $741,000. According to the report, a household would need an annual income of approximately $162,000 to afford a typical starter home in the region. That income level exceeds the median household income in every county across Massachusetts.
For many residents, homeownership remains increasingly difficult to attain.
Renters are facing similar pressures. Nearly half of all renters in Massachusetts are considered cost-burdened, meaning they spend more than 30 percent of their monthly income on housing. More than one-quarter spend over half of their income on housing expenses.
The report notes that Massachusetts ranks among the states with the highest rental costs in the nation, with average monthly rents exceeding $2,700. These costs leave many households with limited flexibility in their budgets, reducing opportunities to save money, invest for the future or build emergency reserves.
Utility costs have also become a growing source of financial stress.
More than half of survey respondents reported cutting back on everyday spending in order to pay utility bills. Researchers found that many residents described feeling financially squeezed despite maintaining employment and meeting their basic financial obligations.
One respondent quoted in the report described the challenge by stating, “We have enough money to get everything we need, but it seems like it’s getting harder and harder to get by.”
The report also points to significant concerns surrounding financial literacy and education. Nearly 70 percent of surveyed residents reported that they had never received personal finance instruction through school, college or the workplace.
Researchers found that access to financial education often correlated with higher income levels, educational attainment and age. Individuals who received financial education generally demonstrated stronger financial literacy and improved financial outcomes compared with those who lacked access to such resources.
“For over a decade, the Office of Economic Empowerment has provided tools and resources to help Massachusetts residents of all ages make informed financial decisions,” said Alayna Van Tassel, Executive Director of the Office of Economic Empowerment. “The Scorecard offers valuable insight into how we can best serve residents moving forward.”
Treasurer Goldberg’s Office of Economic Empowerment has developed a variety of programs aimed at improving financial knowledge and expanding economic opportunities. Among the initiatives highlighted in the report are the BabySteps college savings program, SNAP into BabySteps, financial coaching programs and efforts to expand personal finance education throughout Massachusetts schools.
Despite Massachusetts’ overall economic strength, the report found widespread signs of financial insecurity among residents.
Nearly half of respondents reported difficulty paying their bills during a typical month. More than one-quarter indicated they would be unable or unlikely to come up with $2,000 during a financial emergency. Additionally, 38 percent reported feeling that they would never have the things they wanted in life because of their financial situation.
Families with children face additional financial pressures. Massachusetts continues to rank among the states with the highest child care costs in the country. According to the report, the average annual cost of child care for a family with an infant and a four-year-old is approximately $47,000, compared with a national average of $29,000.
Food costs also remain elevated. Researchers found that a typical family of four in Massachusetts spends more than $1,200 per month on groceries, further straining household budgets already impacted by housing and utility expenses.
The report ultimately presents a complex portrait of Massachusetts. The Commonwealth remains one of the most economically successful states in America, supported by high incomes, strong household wealth and a diverse economy. At the same time, significant challenges remain in the areas of affordability, housing, financial education, income inequality and economic opportunity.
Officials said the Financial Wellbeing Scorecard is intended to serve as a resource for policymakers, community organizations and leaders seeking to improve financial outcomes across Massachusetts. The Treasurer’s Office plans to release updated scorecards every two years, allowing state leaders to track progress, identify emerging challenges and evaluate future initiatives designed to strengthen financial wellbeing throughout the Commonwealth.