Like many markets, the Boston real estate industry is still trying to find the best way to stand up on its own two feet following the recession and the preceding crash in the market. Buying a house in Boston, as a result, has become extremely tough as those who have a quality property are holding on for dear life, and those who are looking are outnumbering each other in staggering numbers. For a Boston real estate agent, the current situation creates many situations whereby an excess of buyers can be found for just about any property, regardless of the state of Boston house prices in certain areas.
Now, with the core cities of Greater Boston attracting young millennials, and aging suburban baby boomers seeking housing more appropriate to their status as empty- nesters, smaller housing units in both urban and suburban areas are becoming fashionable. Yet Boston and the region’s core cities have an undersupply of multi- unit housing while suburban communities increasingly have an oversupply of single- family housing. As such, the region is on a collision course with shifting demographic tectonics that will continue at least until 2030.
The economy in the region is thriving once again and the unemployment hit 4.9% in February 2015. All these mean that people are willing to spend and are happy to meet the higher Boston house prices. Besides the greater Boston area has added more than 200,000 residents since 2000. Finding the actual houses in the first place has become an issue in Boston. With those sharing their rent with a roommate, known as cost burdened renters increasing by 11% – from 39 to 50% – in just fifteen years, more people are under pressure to find accommodation within Boston and its surrounding areas even if it means having to share the cost of rent with someone else to make that possible.
The cost of living in the area has soared over time, too, and being able to afford rent in areas like Cambridge and Somerville can be out of reach for many young professionals with no real chance of being able to afford buying a house in Boston. To get around this problem, the vast majority of people have to look elsewhere. With many communities in the Boston area currently unsuitable for the required addition of low income housing units at the moment, many people are struggling to find the kind of accommodation that they require at present.
The Greater Boston housing market must now plan for what will be an extraordinary shift in housing demand. Unfortunately, the cost of construction and zoning restrictions throughout the region make it exceptionally difficult to synchronize housing supply with housing demand. With development across the city also driving up the rent prices in many locations, locals fear that ambitious young people could be pushed out of the neighborhoods in the future as the cost of living in the Boston area may become unviable.
As the Massachusetts Real Estate world continues to fluctuate, being able to find places for young professionals to become established is going to be vital for the future development of the region.