Affordable home is now the most important consideration for Boston condo buyers – above neighborhood and location. This is a ominous sign that consumers are now more confronted with than ever of the ability to own a piece of Boston real estate.
Why housing affordability will even be a bigger problem in the future
These historic low interest rates has created such a demand for real estate that we now have a shortage of real estate for sale, and that has created one big problem. It’s impacted Boston real estate affordability.
More Housing is Needed
Some say, we can solve the Boston real estate affordability issue by increasing the number of Boston condos for sale. So we need to build more Boston condo buildings. But its unlikely to help much as acquisition and construction costs keep rising.
To make matters worse, Boston condo owners may not have much of an incentive to move. With current interest rates at historic lows, downtown Boston real estate owners may have refinanced.
Now follow me on this, imagined you are one of those Beacon Hill condo owners who just refinanced and its now 2021 or 2022, and rates have risen tremendously. The question is will you really want to sell your Boston downtown condo while your locked into those low rates? Or are you going to stay put?
Boston Real Estate and the Bottom Line
I think we will be heading into an era where we might see Boston condos that turnover at a much slower pace as owners will stay put or decide to rent out their property as Beacon Hill apartment as there carrying costs will manageable because of the low interest rates.