According to study from the Center for Housing Policy, 24% of Massachusetts families are spending as much as 50% of their incomes on housing. This will come as no surprise to those of us living here in Boston. Housing is expensive? This, we know. But, why does Boston condos cost so much and, even more important, how can we fix this?
How we got here
Boston hasn’t always been a great place to live. Between the 1950’s to 1980’s, the city’s downtown neighborhoods were in decline as the middle class moved to the suburbs.
It wasn’t until the late 1980’s and the 1990’s that the city started getting popular aagain. Major crime plummeted (the homicide rate dropped from 24.9 to 11.99 per 100,000 residents between 1990 and 2010) while local banks and mutual fund companies grew. Colleges increased enrollments and hospitals expanded, creating professional and custodial jobs for thousands.
As Boston’s population recovered, housing prices skyrocketed. It’s estimated that Boston’s median home price jumped 153% between 1980 and 2000 and another 50% between 2000 and 2010.
While more demand is somewhat responsible for higher Boston condo prices, it doesn’t explain most of it. The city’s population is still smaller – 23% smaller – than it was 60 years ago.
Over the years, apartments in the South End, Back Bay and Beacon Hill were renovated and converted to Boston condos, but with fewer units per building. In Boston more people began living alone and putting off marriage, or getting married but reducing the number of children they had, so there was no reason for large, multi-bedroom Boston condos to be built.
Since 2000, Boston’s college student population exploded, due to US demographic changes, easy access to tuition loans, and a renewed emphasis higher education by business and government. It’s estimated there are 67,000 students living in rental housing within Boston.
Where we are
During the past ten years, there has been a lot of construction in the city –but didn’t keep up with the population growth. T make matters worse Airbnb became very popular reducing apartment stocks and investors were buying Boston condos for Airbnb rentals. Fortunately, the Mayor has issued laws that will in the near future put an end to this, as only owners who live in multi-family can rent out Airbnb for 12 months of the year.
Where we’re going
The Boston real estate market is improving. There is definitely renewed interest in looking for new places to live – I’ve seen increased traffic on my Boston real estate websites and noticed more people visiting Sunday open houses. The downside of this is that there will be more buyers competing for a limited number of homes for sale, but eventually, developers will be encouraged enough to break ground on new projects. More developments in the pipeline now will benefit us two to three years from now. The Boston Seaport is being built up at record speed with new housing stock
And, dormitory construction is on-going. Since 2000, Boston’s colleges and universities have added 29 dormitories and nearly 11,000 dormitory beds, an increase of 39%. (Offsetting this has been an increase in student enrollment by 16,559 students – 12.3% – during the same period.)
Boston Luxury Condos For Sale
All Boston Luxury Condos for Sale $500,000 – $15,000,000
Back Bay Boston Luxury Condos for Sale $900,000 – $10,000,000
Beacon Hill Boston Luxury Condos for Sale $550,000 – $3,000,000
Charlestown Luxury Condos for Sale $350,000 – $3,000,000
Fenway Luxury Condos for Sale $450,000 – $2,500,000
Financial District Luxury Condos for Sale $850,000 – $12,000,000
Midtown-Downtown High Rise Luxury Condos for Sale $900,000 – $20,000,000
Seaport District High Rise Condos for Sale $1,000,000 and up
South Boston Luxury Condos for Sale $650,000 and up
South End Luxury Condos for Sale $650k and up
West End High Rise Luxury Condos for Sale $650,000 and up