The Core Problem
Nantucket's median home price exceeds $3.7 million. Homeownership is out of reach for 90% of year-round residents. But the seasonal rental market is even more brutal: properties that rent for $6,000–8,000/month in winter command $30,000–50,000/month in summer—precisely when seasonal workers need them.
This creates a paradox: the island's economy depends on seasonal workers, but the housing market makes it nearly impossible for those workers to live here.
The Math: What Would It Take?
Let's calculate what a seasonal worker would need to earn to afford housing independently, assuming:
- 5-month season (May through September)
- 50 hours/week (typical for hospitality)
- 22 weeks of work = 1,100 total hours
Scenario 1: Shared Workforce Housing
When available, shared seasonal worker housing runs approximately $2,000/week:
| 22 weeks × $2,000 | $44,000 |
| ÷ 1,100 hours worked | $40/hour just for rent |
Scenario 2: Modest Shared Room
If a worker finds a shared room at $1,500/month (rare but possible):
| 5 months × $1,500 | $7,500 |
| ÷ 1,100 hours worked | $6.82/hour for rent alone |
Scenario 3: Independent Seasonal Rental
A basic studio or 1-bedroom in the seasonal market (if available): $3,500–5,000/month:
| 5 months × $4,000 | $20,000 |
| ÷ 1,100 hours worked | $18.18/hour just for rent |
Beyond Rent: Full Living Expenses
Rent is only part of the equation. The MIT Living Wage Calculator estimates that a single adult in Nantucket County needs $35.25/hour (working full-time, year-round) to cover all basic expenses:
| Expense Category | Annual Cost |
|---|---|
| Housing | $27,691 |
| Transportation | $12,454 |
| Food | $5,820 |
| Medical | $4,257 |
| Civic & Other | $5,223 |
| Total (Annual) | ~$73,000 |
For a seasonal worker (5 months), prorated living expenses:
- 5-month portion: ~$30,400
- ÷ 1,100 hours = $27.65/hour minimum for basic survival
The Gap
Current server base wages: $13–19/hour. Even with tips averaging $150/day, total compensation barely covers expenses—and only if housing costs under $1,500/month, which is increasingly rare.
Current Reality: How Workers Survive
With tips, a server working 50 hours/week might earn:
| Base pay: $15/hr × 50 hrs | $750/week |
| Tips: ~$150/day × 5 days | $750/week |
| Weekly total | $1,500 |
| Season total (22 weeks) | $33,000 |
This barely covers living expenses if housing costs $1,500/month. At $2,000+/week for housing, it's mathematically impossible without:
- Employer-provided housing (the most common solution)
- Multiple workers sharing a single room
- Commuting by ferry from Cape Cod (1+ hour each way)
- Living in cars, boats, or camping illegally (it happens)
How This Affects What Visitors Pay
What would happen if restaurants had to pay wages that fully covered seasonal housing costs?
Current Model
- Server base wage: ~$15/hour
- Employer cost (with payroll taxes): ~$18/hour
- Many employers provide housing as part of compensation
If Wages Covered Housing Independently
If an employer had to pay wages sufficient for a worker to afford $40,000 in seasonal housing:
- Housing subsidy needed: $40,000 ÷ 1,100 hrs = $36.36/hour
- New total employer cost: ~$54/hour per worker
- That's 3× current labor costs
Menu Price Impact
Labor typically represents 25–35% of restaurant operating costs. If labor costs triple:
| Item | Current Price | If Wages Covered Housing |
|---|---|---|
| Lobster roll | $38 | $57–65 |
| Dinner entrée | $45 | $68–77 |
| Craft cocktail | $18 | $27–31 |
| Dinner for two | $150 | $225–255 |
The Hidden Subsidy
Current prices are only possible because employers absorb housing costs (reducing their margins), workers accept substandard housing, or workers simply don't come—leading to reduced hours and service levels. Visitors are already "paying" for the housing crisis through understaffing and limited availability.
The Trade-offs
There's no free lunch. Every approach to the housing crisis involves trade-offs:
| Approach | Visitor Impact | Worker Impact |
|---|---|---|
| Status quo | Current prices, but understaffing and reduced hours | Can't afford housing; many don't come |
| Employer housing | Modest price increase (5–15%) | Housed but dependent on employer |
| Wages cover rent | Significant price increase (50–70%) | Independence; some businesses close |
| Government housing | Property tax increases | More stable workforce; limited supply |
What Nantucket Is Doing About It
The town's Strategic Plan identifies housing as a top priority. Current initiatives include:
- Waitt Drive Dormitory Project — Seasonal housing for ~50 workers
- Municipal Housing Projects — Town-developed workforce housing
- Affordable Housing Trust — Creating and preserving affordable units
- Wiggles Way & Gooseberry Place — New developments with municipal employee preference
- State Funding — Governor Healey's "Seasonal Communities" program provides $5.16 billion over 5 years for communities like Nantucket
These efforts help, but they address hundreds of units in a market that needs thousands.
What Visitors Can Do
Understanding these economics can change how you experience the island:
- Tip generously — Tips are a significant portion of worker income
- Be patient — Understaffing isn't poor management; it's a housing crisis
- Support businesses that house workers — They're absorbing real costs
- Book reservations — Helps businesses staff appropriately
- Understand reduced hours — Some restaurants close certain days because they literally can't find staff
Join the Conversation
This analysis is based on publicly available data and reasonable assumptions. Housing economics on Nantucket are complex, and we may have missed nuances or gotten details wrong.
If you have comments, corrections, additional data, or would simply like to discuss this topic further, we'd love to hear from you:
We're especially interested in hearing from seasonal workers, business owners, housing advocates, and anyone with firsthand experience navigating Nantucket's housing market.