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Boston Real Estate - A Tale of Two Desires
Nov 20, 2012 (06:11 PM EST)
LOS ANGELES, Nov. 20, 2012 /PRNewswire-iReach/ -- It may not be the best of times, but it's definitely not the worst of times! Since 2005,Boston's housing market has been operating at half-speed. Only about 6,000 units were added to meet the city's growing population each year. That's about half of what was being added in the booming years before that. And, many of those new housing units are smaller than their predecessors. It's a sign that some of Boston's new residents are looking for something affordable to fit into their smaller budgets. While the smaller, more affordable trend is expected to continue for the foreseeable future, it is now full-speed ahead in Boston – at least, according to the results of a new study from the Dukakis Center for Urban and Regional Policy at Northeastern University. In fact, the study says that Boston's developers will need to double or triple their efforts through 2020 in order to meet the demand that's expected to hit Beantown!
But what about 2012? What's the status of Boston's housing market right now? Today, Boston's housing market is all about the slow signs of recovery. Home sales have started to go back up. Vacancies have started to go back down. The number of permits being applied for has started to go back up. The number of foreclosures has started to go back down. Rent prices are also up. Of course, like in many other cities across the country, landlords in Boston raised rent prices when they saw how hesitant people were to buy. In fact, the average Boston rent price is over $1,800 – a record high for the city. And, so far, there's no indication that those high rents are going to come down any time soon. In fact, rent prices have become a real problem in Boston. It has become harder and harder for people to find affordable places to rent. More and more technology companies have moved into the area recently, and they have brought lots of young employees with them. However, many of those employees have been afraid to buy and have been priced out of the renters' market. As a result, the Boston housing market has spent much of the year at odds with itself!
So, what about all of the new construction that the study talked about? The majority of it will probably not be single-family homes. According to various expert scenarios, as much as 53% of the new construction over the next several years will come in the form of multi-family housing – like condos and townhomes. Even the lowest estimates have the amount of new multi-family housing at 48%. Even though 2020 is a long way away, Governor Deval Patrick has a goal of creating 10,000 new multi-family units every year – beginning right now. His administration is starting with the new Compact Neighborhoods program, which is designed to give incentives to developers that create housing near the MBTA and town centers. That way, buyers can be near public transit and major job centers – which will hopefully give them the motivation they need to buy. It's also a great incentive for younger buyers, who don't want to live in the suburbs. But the Boston housing market isn't all about the younger generation. Lots of Baby Boomers are relocating to Beantown these days, too. And since they're all downsizing, the multi-family housing trend is just what they're looking for. They'll be able to get all of the perks of living in Boston, without having to deal with all of the hassles that come with owning a single-family house. Two groups. Two different desires. In the end, though, they'll both be happy with the same end result!
Daniel Torelli RealtyPin.com, 514-836-1432, email@example.com
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