The numbers are somewhat staggering: 9,800 new apartments are slated to come on line in Boston in coming years – 887 units did so last year, 1,600 will come on line this year, and the rest will follow soon after.
It’s all very welcome. The city – and state – desperately needs new housing.
But that leaves a big: What if there isn’t enough demand for all of these luxury units? What will happen if the market can’t absorb them?
The BBJ’s front-page story today addresses this issue:
(As) high-end developers continue to add inventory to the market, there’s some skepticism among real estate insiders that there won’t be enough demand for all these units. While optimistic developers point to promising demographic trends, others question the city’s capacity to fill the slew of luxury units that will soon flood the market. If the skeptics are right, it won’t be the first time Boston overbuilt one property type. As Harold Brown, the octogenarian developer and landlord, puts it: “The glut will bring rents down, and some developers and banks will lose money.”
If rents fall and some banks lose money, our response would be this: That’s the free market, folks. And that too would be welcome.
And then maybe developers will start doing two other things: 1.) Building more condos (as opposed to apartments) and 2.) Building more affordable housing, a huge niche where demand will remain high for years to come.
There’s an outside chance that the negative effects of overbuilding could lead to more cautiousness on the part of developers and banks. But that’s the free market too, though we suspect developers and lenders simply wouldn’t fold up and go away.
They’d try to find new niches – and that gets back to more condos and affordable housing.
Back to Boston condos for sale homepage
Contact me to find out more about this property or to set up an appointment to see it.
SEARCH FOR CONDOS FOR SALE AND RENTALS
- Back Bay
- Beacon Hill
- Charlestown Navy Yard
- Dorchester Heights
- Jamaica Plain
- Leather District
- Seaport District
- South Boston
- South End
For more information please contact one of our on-call agents at 617-595-3712.
Updated: December 2017
Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs
In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.
For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.
Charles River Park
Surrounding Communities of Boston
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.
Ford Realty Inc
137 Charles Street
Boston, Ma 02114