How on earth can we get into Boston? (Cambridge, Harvard: transplants, to buy)

[r_p]

Originally Posted by Boston Shudra

Just because there are people who can afford it, doesn't mean they should have to. While I'm no millionaire, I believe that if I was one I'd still prefer to pay $500k instead of $800k for the same home.

It doesn't work that way. Real estate prices (especially for SFHs) wont go down in the near future. There's just too much easy money floating around. Moreover, markets will continue to do well this year as COVID cases decline.

[msRB311]

I can understand not wanting to spend at the top of your budget...but depending upon what that is or isn't you need to be realistic.

[massnative71]

Originally Posted by r_p

It doesn't work that way. Real estate prices (especially for SFHs) wont go down in the near future. There's just too much easy money floating around. Moreover, markets will continue to do well this year as COVID cases decline.

But this great wealth is only in the hands of a minority. Although in Greater Boston it's a sizable one, still a minority. Due to a super low inventory and hesitancy to sell, that minority has so far been able to sustain those prices. That cannot continue on forever. Many are "just waiting" for Covid to calm down in order to put their homes on the market. Many homes are still owned/occupied by boomers, where there will be another huge shift taking place. The next few years will be VERY interesting, to say the least.

[massnative71]

Originally Posted by msRB311

I can understand not wanting to spend at the top of your budget...but depending upon what that is or isn't you need to be realistic.

One cannot let desperation guide them, that rarely ends well (especially amidst a bubble and uncertain economy like we are currently in).

[Boston Shudra]

Originally Posted by r_p

It doesn't work that way. Real estate prices (especially for SFHs) wont go down in the near future. There's just too much easy money floating around. Moreover, markets will continue to do well this year as COVID cases decline.

I know, I know. You must forgive a guy for wishful thinking.

It's just that the OP's statement about "he's making more money than ever, so why can't we afford to live?" really hit home. MA's median income has risen over the last few years, iirc, and that's great! But if the cost of living (home values and rent in particular) increase proportionally with income, then that extra income doesn't even end up mattering. Furthermore, the work done to gain that added income doesn't end up mattering.

So long as inventory is so severely restricted in the area, costs really will match income. And the inventory is restricted by a small percentage of people: those who have power in the state and municipal governments. These people tend to be well-off, land-owners who'd love to see prices get as high as possible. But it would be beneficial to most people in the state for inventory to increase. If MA got rid of all zoning laws in every town and city, I'm sure the housing crisis would right itself within 5 years. Lack of zoning is one of the reasons why the sunbelt is so much more affordable and their housing stock is so much newer than ours.

[massnative71]

Originally Posted by Boston Shudra

Lack of zoning is one of the reasons why the sunbelt is so much more affordable and their housing stock is so much newer than ours.

Nah most places have some sort of zoning, it's just usually far less restrictive than in Mass. You take one extreme (Houston) that is a total free-for-all, and the NIMBY-on-steroids towns west of Boston...I consider both to be bad and neither appealing in the slightest. You want a happy medium.

[BostonBornMassMade]

Originally Posted by msRB311

The more pay or the WFH part? Or both?

Both

[r_p]

Originally Posted by massnative71

But this great wealth is only in the hands of a minority. Although in Greater Boston it's a sizable one, still a minority. Due to a super low inventory and hesitancy to sell, that minority has so far been able to sustain those prices. That cannot continue on forever. Many are "just waiting" for Covid to calm down in order to put their homes on the market. Many homes are still owned/occupied by boomers, where there will be another huge shift taking place. The next few years will be VERY interesting, to say the least.

I disagree that wealth is in the hands of a minority. Almost 10% of households in MA are millionaire households (excluding real-estate and 401k) which is amongst the highest in the country, e.g., see https://www.kiplinger.com/slideshow/...ked/index.html

[massnative71]

Originally Posted by r_p

I disagree that wealth is in the hands of a minority. Almost 10% of households in MA are millionaire households (excluding real-estate and 401k) which is amongst the highest in the country, e.g., see https://www.kiplinger.com/slideshow/...ked/index.html

Uh, 9.38% is a minority.


Average household net worth (INCLUDING real estate and retirement accounts) is $148K.


https://www.lovemoney.com/gallerylis...state-revealed

[yellowstatus]

Truthfully, it would be nice if Cambridge real estate was more affordable. It's still a good amount cheaper than the Bay Area (40%?). But the expensive real estate pushes out some interesting variety in people and local businesses. Maybe your pessimistic take is right, thought prices could very well increase another 50% from here in the next decade.