The Globe has a depressing article on how rents in Boston are now reaching record highs.
It seems almost impossible, considering the weak economy, the amount of lower-priced homes out there, and super-low mprtgage rates. You’d think rents would at least be holding steady.
But law of supply and demand is still the law of supply and demand. Many people just don’t feel comfortable about buying homes in this fragile economy, opting to rent instead, thus driving up demand for a limited supply of rental units. The result is higher prices.
The answers to the problem: A stronger economy, more people buying homes, less people renting, and contractors building more housing units. But all of that, needless to say, is easier said than done.