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Old 01-06-2020, 10:45 AM
 
Location: Baltimore
7,543 posts, read 3,062,985 times
Reputation: 4674

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Basically towns are starting to push back against housing development, rents can’t go much higher, construction and land costs are too high to build anything let alone affordable housing. They’re saying we still need more housing but it’s just too difficult to build it right now. Folks are starting to build more lucrative office space and then deciding (if) to build housing later.


https://www.bostonglobe.com/business...LeO/story.html

From the article:

This year is going to be a peak,” D’Amato said. “If you’re looking at larger luxury buildings, this is going to be the highest year we’ve ever seen for new deliveries” of housing stock.

“With all these things playing out, you’re putting the brakes on new development,” said David Begelfer, a consultant who long led the real estate trade group NAIOP Massachusetts. “We’re basically reaching a ceiling right now.”

The trouble is, that ceiling includes residential rents at unprecedented heights.

Reis Inc. reported Friday that the average rent in Greater Boston — including all apartment sizes — was $2,349 a month in the fourth quarter of 2019, trailing only New York, San Francisco and San Jose, Calif., among the 79 markets the real estate data firm tracks. One-fourth of Boston-area renters pay half or more of their income for housing, according to the rental website Apartment List.
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Old 01-06-2020, 10:48 AM
 
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Originally Posted by BostonBornMassMade View Post
One-fourth of Boston-area renters pay half or more of their income for housing, according to the rental website Apartment List.
Pretty scary.
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Old 01-06-2020, 11:19 AM
 
Location: Baltimore
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We gotta create some tax incentives to lure employers to other cities in the state.

The problem sithe rest of the state hold zero appeal or name brand anyone not from here. All employers and all employees know is Boston. The young people don't want to live in suburbs because they're exceptionally bland and boring. The developers see all the colleges in Boston and dont want o have to do the market research on anywhere else besides possibly Worcester sorta kinda. As a result they just keep trying to cram into Boston. State and City leaders need to manage his flow.

I've come to realize TOD in MA is a farce because the "T" is not an attractive means of getting to work and wholly impractical for going about your day to day business.

Unfortunately the only thing that can help now is more office parks, artificial secondary town centers and tons of suburban apartment complexes. We've mismanaged our way to this point. The luxury trickle down hasn't lowerd prices its just slowed increases. Even still the high end of the market has grown quite soft. Plenty of options there for those buyers/renters and the building almost fills (90%+) but it takes several months. Meanwhile any affordable development has a full waitlist as soon as its BPDA approved
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Old 01-06-2020, 11:21 AM
 
Location: RI, MA, VT, WI, IL, CA, IN (that one sucked), KY
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About time, its been going like gangbusters for a good 15 years straight.
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Old 01-06-2020, 11:38 AM
 
Location: Baltimore
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Originally Posted by timberline742 View Post
About time, its been going like gangbusters for a good 15 years straight.
more like 7.

There was a big push from 1997-2006(mostly infill, rehabs and flips and more modest projects, lots of SFHs and duplexes) and then 2013-present. I clearly remember tons of projects just stopped mid construction or mid ground work in 2007 and things stoods till for 5 years. Some projects like Olmsted Green, Harvard Commons and "The Shops at Riverwood" in Hyde Park and Mattapan never really rebounded.

Others like Tremont Crossing, the revitalization of Dudley and the Ferdinand, and Bartlett Yards were either lost in the weeds, did not have the intended effect or broke ground many years later than originally planned

Last edited by BostonBornMassMade; 01-06-2020 at 11:48 AM..
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Old 01-06-2020, 11:48 AM
 
Location: RI, MA, VT, WI, IL, CA, IN (that one sucked), KY
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Eh, well I was living in Somerville for those years (except a year in SF) and there never appeared to be any slowdown in that area.
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Old 01-06-2020, 11:59 AM
 
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Originally Posted by timberline742 View Post
Eh, well I was living in Somerville for those years (except a year in SF) and there never appeared to be any slowdown in that area.
Somerville was probably an exception for that period.
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Old 01-06-2020, 12:16 PM
Status: "No Limits" (set 15 days ago)
 
Location: Boston, MA
998 posts, read 1,200,924 times
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This makes sense. The market absorption rate is declining. In addition, how many "luxury" developments can the greater Boston area sustain, when wages are rising slower than RE prices?
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Old 01-06-2020, 12:20 PM
 
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Originally Posted by New Englander View Post
This makes sense. The market absorption rate is declining. In addition, how many "luxury" developments can the greater Boston area sustain, whene wages are rising slower than RE prices?
The Boston housing market (particularly the downtown luxury) has been until this point driven by outside/foreign investors. It's not local wages that have been sustaining the current madness. Once the foreign money dries up, things could get very interesting.
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Old 01-06-2020, 01:44 PM
 
Location: Baltimore
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Originally Posted by massnative71 View Post
Somerville was probably an exception for that period.
I think Somerville was the prime exception. I don’t think there was any development at all-like at all-in Dorchester or East Boston during that 6 year stretch. Let alone Lynn Revere and Chelsea.
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