In the video above, Fox News interviews a real estate expert and asks: “Are there too many luxury homes being built in Manhattan?” The answers provided can easily be applied to the Boston luxury apartment and condo market. Here are a few similarities that were discussed in the video that can be easily identified with Boston:
1.The main reasons real estate developers are building luxury properties is that land prices and construction costs are so high that the math doesn’t work to build anything else.
2.There is no new supply of condos being built for under million dollars because developers cots are being absorbed in the acquisition costs and building costs.
3.Real estate investors are now concerned the luxury condo/apartment market is being saturated, not enough demand and too much supply
4.Banks are not financing these luxury real estate projects, its being financed by private investors looking for a high return and the belief that real estate is a safe investment.
Boston Luxury Condominiums and Apartments:
Number of Boston single-family homes over one million dollars – 30
Number of Beantown condominiums priced over one million dollars – 136
Number of Boston proper apartment rentals over $5,000.00 per month – 85
Read more on the residential luxury market.