"In tight local market, no relief for renters, apartment hunters" January 26, 2012|Jenifer B. McKim, Globe Staff
Rents in the Boston area hit record highs in the last quarter of 2011, pushed up by increased demand and declining inventory, maintaining the region’s reputation as one of the country’s most expensive places to live....
Locally, rental prices have been climbing for almost two years, despite a slumbering housing market. Many people have chosen to stay in apartments rather than buy during the downturn, while others have been forced to rent because of unemployment or uncertainty about their job status, housing analysts say. Even with a recent burst in construction of rental housing, economists expect monthly rents to keep increasing for several years....
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FLASHBACKS:
"Apartment construction booms as rents rise" October 15, 2011|By Casey Ross, Globe Staff
A burst of apartment construction is sweeping across Boston’s neighborhoods, as several developers are starting towering projects to tap into high demand for rental units while the homeownership market continues to struggle....
The rush of activity is fueled by climbing rents and dropping vacancy rates that make apartment buildings particularly attractive investments in the otherwise dour real estate market. In the quarter that ended Sept. 30, average asking rents in Boston climbed to $1,773, making the city the fourth most expensive rental market in the country, according to Reis Inc., a real estate research firm. Only New York City; Westchester, N.Y.; and Fairfield County, Conn., are more expensive....
More people are being forced to pursue rentals because they can’t afford higher down payments banks are demanding following the housing crisis. That is putting more pressure on the apartment market, causing average rents to increase....
Real estate specialists said the current market is particularly unusual because it is fueling rental construction at all price points, from luxury units in the Back Bay and downtown, to mid-priced apartments in the suburbs, to scores of affordable homes being built in Chinatown and at the Charlesview Residences in Cambridge.
Affordable units are attractive to investors because many come with credits they can use to lower their tax bills. Compared to other investments - such as stocks or government bonds - such tax credits also are seen as producing larger and more reliable returns in strong urban markets....
In other words, STATE AUTHORITIES will always make sure tax loot goes to the "investors."
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And about that affordable housing:
"Construction of affordable housing units has stalled across the state over the last five years, and dropped sharply in many Boston suburbs, even as demand soars during a time of rapidly rising need....
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I guess it all depends on which month you rent a Globe, sigh.
Related: Renting a Room in Boston
