New Boston condo construction is lagging
Boston is substantially behind the national norm for constructing new dwellings, indicating that Massachusetts has a lot of work to do in order to advance housing supply and handle its housing emergency.
Boston issued 26.5 homebuilding permits for each 100,000 people in May 2023, a figure which is roughly half the U.S. average of 42.3 per 100,000.
- This conclusion comes from a study of the United States Census Bureau’s data which was conducted by Axios’ Kavya Beheraj and Alex Fitzpatrick.
It is imperative for Massachusetts to amplify the production of homes in order to counter a housing shortage that continues to drive up prices, particularly in Boston which has some of the most costly properties in the country as the aftermath of the pandemic lingers.
Recent data from Freddie Mac has revealed that the U.S. is in need of roughly 3.8 million dwellings to be used either for rental purposes or purchase, according to a report from Axios’ Emily Peck.
- An increase in the production of new dwellings could cause prices to drop.
The rate for Boston has grown marginally from 24 permits per 100,000 people in May 2020 to the current figure of 2023, whereas there has been a much more substantial increase in the national average over the same time period.
- In May 2023, Boston saw 1,303 permits distributed, of which 916 were for structures with five or more rooms, 303 for single-family dwellings and 54 for buildings with 2-4 rooms.
Results presented from American population count, not altered; Visualization by Kavya Beheraj/Axios
Quantitatively, in the month of May of 2023, a total number of 139,600 permits were given out in America – mainly for individual residences.
At the same time, other urban centers have experienced an extraordinary growth in new housing developments as the aftermath of the pandemic becomes reality.
- For instance, Raleigh experienced a substantial boost in permits granted to its citizens; going up from 71.7 to 138 out of 100,000 people between May 2020 and May 2023.