3 Responses to “Boston-area housing: Still too expensive” »»

1. Funny
   Comment by Funny | 12/17/11 at 7:31 am

   It’s quite a pickle.

   If supply is increased, especially affordable non-luxury apartments, it undercuts luxury units and is going to cause a downward pressure on rents and housing prices across the board. It needs to be done, but homeowners and developers are going to cry foul. Especially since they’ve been holding on to their ideas on home value for so long. They stick a label and price on something, and ignore the market because they have better control on it right now.

   It’s been amazing how sticky mortgage and rent prices have been in Boston, while it’s getting harder and harder to justify those prices. There’s lots of demand to move to Boston, but not at luxury prices.

   The middle class and young professional exodus to the suburbs and out of state is proof of that. And thats something thats going to come back to bite Boston and the greater MA economy if something isn’t done.

2. Suburban reader
   Comment by Suburban reader | 12/17/11 at 7:54 am

   Re Funny’s comments: Good observations. And a pickle indeed. Think of it the other way: If the government decides to discourage the building of new apartments, it’s effectively siding with current homeowners who want to maintain their higher home values. Is that fair? Is that fair to those who haven’t yet bought? It isn’t. I lean toward the idea of letting developers build more apartments and condos if they want. Prices are too high because supply is too low. That’s what the market — not the government — is telling us.

3. Funny
   Comment by Funny | 12/18/11 at 4:00 pm

   I agree, but you also can’t forget how hard it is to break ground in this city. The right backs must be patted, and the NIMBY’s appeased.

   That severely hampers construction, not always to the detriment of the developers who rely on limited supply.

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