The Dukakis Center for Urban and Regional Policy at Northeastern University recently released its annual Greater Boston Housing Report Card. In the Report Card, the Dukakis Center predicts that high home prices will remain the norm in the Bay State, fueled by a vibrant economy powered by the life sciences, high tech, medical and financial services industries. Also underpinning continued high home prices, the Report Card notes, is the pervasive bias against new home construction in Bay State zoning and permitting practices. An intriguing forecast of an upcoming shift of demand away from single family homes and towards condos and multi unit housing is a highlight of the Report Card. The Dukakis Center ends the Report Card with a call for a radical revision of zoning laws and the permitting process in Massachusetts so as to allow construction of many smaller, less expensive new homes in the Bay State.
You can download the full Report by following the hotlink here or in the image above.
MA home prices will remain elevated
In the 2009 Report Card, issued during the depths of the Great Recession, the Dukakis Center projected that then-depressed home prices in the Bay State would soar again once the Commonwealth’s economy got back on track. In making this price prediction, the Dukakis Center cited the lack of an adequate supply of housing in Greater Boston as the fundamental underpinning of high home prices in the region.
Boy, were they right! Greater Boston home prices have regained all the ground lost during the economic downturn, according to the most recent edition of the seasonally adjusted Case-Shiller Home Price Index for Boston.
The Boston Index has risen 4.8% since last August and now stands above 180 for the first time since March 2006. The Index is just 0.14% below its all time high of 180.56 set in November 2005. High home prices appear likely to remain a fact of life in Massachusetts according to the Dukakis Center, unless a massive number of low cost new homes are built in the Bay State. And that will not happen, the current Report Card says, unless local zoning laws are revised and restrictive permitting processes are eased.
Not enough new homes being built
In the Report Card, the Dukakis Center notes that, despite the growing economy and the urgent need for more housing in Massachusetts, there is no new home building boom currently underway in the state. The Dukakis Center lays the blame for this on the large lot zoning and anti growth permitting practices that are so prevalent in the Commonwealth. Widespread anti-growth sentiment certainly has strangled the new construction industry here for decades.
The chart above (as supplemented by me) clearly shows how the absence of a new home building boom in MA today comes on the heels of an outright collapse in new construction during the Great Recession. The number of new building permits issued in the Commonwealth peaked in 2005, then went into a prolonged tailspin. From 2008 through 2011, annual building permit volume in Massachusetts was less than half of what it was in the early 2000s. Permit volume recovered in 2012 and 2013, but notably declined again in 2014.
The resulting dearth of recently built homes in Massachusetts is exacerbating the tight supply of homes for sale in Massachusetts and putting additional upwards pressure on home prices.
Out with single family homes, in with condos?
Not only are not enough new homes being built in Massachusetts, but according to the Dukakis Center, housing demand may be about to undergo a major shift away from large single family homes towards smaller homes, and especially condos.
In the Housing Report, the Dukakis Center forecasts that the rate of appreciation of traditional single family homes in Massachusetts may begin to falter in coming years as aging Baby Boomers seek to sell their large homes in favor of condos and multi-unit properties (the latter enabling them to live with members of their extended family).
The Dukakis Center also warns that while the large Millennial Generation is entering their home-buying years, this age cohort appears disinterested in the suburban lifestyle so prized by previous generations of MA home buyers. Instead, the Dukakis Center forecasts that Millennials will reject traditional single family homes and will seek condos and multi-family homes in urban settings.
I-495 suburbs should do just fine
For those of you living in the suburbs along the I-495 corridor of Massachusetts, there’s no need to panic and sell your single family colonial homes anytime soon! The I-495 corridor, especially between I-95 and the Mass Pike, has traditionally been a pocket of relative housing affordability in Eastern Massachusetts, offering great schools and an excellent quality of life. Home buyers fleeing the outrageous prices of the inner suburbs should continue to buy in towns such as Foxboro, Mansfield, Wrentham, Franklin, Medway, and Holliston. The I-495 region should continue to do well as a superb place to raise families, no matter how a much of market shift may develop in favor of urban condos and multi-family homes.
Home buying, a smart investment in your future
Given the bias against new construction in Massachusetts, homeowners in the Bay State generally face less competition when they sell. The constricted supply of housing in the state forms a floor supporting Massachusetts home values. The Massachusetts economy has a bright future so owning a home in MA should be a good investment in coming decades. Contact Warren Reynolds for help and advice about buying a home in Massachusetts!
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You get more with Warren Reynolds than you do with other top real estate agents. You’ll find in Warren rare knowledge and experience dedicated to helping you achieve all the value that home brings. Warren has a law degree and 20+ years of home selling success in Massachusetts. — talk with Warren today! 508-561-6259
"We have now bought and sold five homes. By far, you have been the best realtor we have worked with. Your professionalism and knowledge are so valuable to your clients. You made this process so easy. "-CB
Make better decisions
and feel in control.
Did you know you can materially improve your home selling success by choosing your marketing agent and brokerage brand wisely? It’s true! A marketing agent with a sterling reputation, backed by a strong brokerage brand, will do wonders for the reception your home gets upon entry to market. Call Warren today! 508-561-6259
"As first time homebuyers we were fortunate to work with Warren. He was a great asset and sounding board. He always gave solid advice. Warren played a pivotal role in helping us negotiate with a difficult seller. We truly benefitted from having Warren in our corner and so will you." -JK
Maximize your home selling success.
Not only is Warren highly skilled and dedicated to protecting your best interests, he will be highly responsive to your needs! He CARES about his clients and is always, always there for them. Why not give it a try? Contact Warren now and see how well he takes care of you! – talk with Warren today! 508-561-6259
"I had many, many questions which Warren was always more than willing to answer with a never ending patience. Throughout the process Warren looked out for my best interest. I may have purchased a garden style condo but Warren treated me like I was purchasing a million dollar estate!" -MP
Get the attention you deserve.
Warren is a very creative real estate practitioner and he uses that creativity in ways that provide important advantages to clients. Creatively runs in Warren’s family! His uncle was Harnett T. Kane, an internationally-recognized investigative journalist and New York Times best-selling author of thirty books about the American South. Experience Warren’s refreshing difference today! 508-561-6259
"Your creative approach to all aspects of my move helped make the transition easy and pleasurable. You were recommended to me by a friend who appreciated your integrity, expertise, friendliness and conscientiousness - qualities that I have witnessed in abundance as we've worked together." -KB
Get creative with Warren.
Warren is a highly dedicated professional in all his real estate dealings. That means he will continue to serve you well, even when others would compromise on their commitments. Warren’s ultimate goals in business are better transactions and greater client satisfaction. Talk with Warren today! 508-561-6259
"As first time homebuyers we were fortunate to work with Warren. He was a great asset and sounding board. He always gave solid advice. Warren played a pivotal role in helping us negotiate with a difficult seller. We truly benefitted from having Warren in our corner and so will you." -JK
Maximize your home selling success.
All real estate agents are legally and ethically bound to be fiduciaries acting in their client’s best interests. His name stands for integrity and he takes his fiduciary duties to you very seriously. He’ll steadfastly put your interests first throughout your home purchase or sale – talk with Warren today! 508-561-6259
"Warren was always there for us. Throughout the process, Warren kept on top of all our concerns. Warren worked for us, and looked out for our best interest. He is a very professional and caring person." - BP
Feel safe and well taken care of.
Warren is a highly dedicated professional in all his real estate dealings. That means he will continue to serve you well, even when others would compromise on their commitments. Warren’s ultimate goals in business are better transactions and greater client satisfaction. His devotion to excellence can demonstrably improve your home buying and selling decision-making and, consequently, your experience of home ownership. Warren constantly stays current on the local housing inventory. And he is conversant with the broader market trends that affect home sales statewide link to Market Updates. Warren knows that the market knowledge he works so hard to maintain and his high standards of real estate practice help him achieve for you the lasting, true value of home ownership. Talk with Warren today! 508-561-6259
"Warren was the finest real estate agent we've ever worked with. This was evident to us in comparison to quite a few realtors we attempted to utilize, as they were not very helpful, understanding or willing to work with us based on our preferences." -SM
“If you think it’s expensive to hire a professional,
wait until you hire an amateur.” Red Adair
Did you know you can materially improve your home selling success by choosing your marketing agent and brokerage brand wisely? It’s true! A marketing agent with a sterling reputation, backed by a strong brokerage brand, will do wonders for the reception your home gets upon entry to market. Warren is known in the local brokerage community as a dependable, highly skilled professional who is a straight-shooter. Other agents like working with Warren because they know they can trust him to be a reliable partner in any transaction. And the Berkshire Hathaway HomeServices brand stands for sound decisions and extraordinary strength and stability. The “Forever Brand” brokerage created by Warren Buffet sets the standard for the real estate industry by focusing not on selling more homes, but rather on selling homes for more!Call Warren today! 508-561-6259
"As first time homebuyers we were fortunate to work with Warren. He was a great asset and sounding board. He always gave solid advice. Warren played a pivotal role in helping us negotiate with a difficult seller. We truly benefitted from having Warren in our corner and so will you." -JK
Maximize your home selling success.
Not only is Warren highly skilled and dedicated to protecting your best interests, he will be highly responsive to your needs! He CARES about his clients and is always, always there for them. In person, by phone, email or text, whenever you need him, you’ll get a prompt response from Warren! Warren’s clients rave about the high degree of consideration and attention they get from him. Why not give it a try? Contact Warren now and see how well he takes care of you! – talk with Warren today! 508-561-6259
"I had many, many questions which Warren was always more than willing to answer with a never ending patience. Throughout the process Warren looked out for my best interest. I may have purchased a garden style condo but Warren treated me like I was purchasing a million dollar estate!" -MP
Get the attention you deserve.
Warren is a very creative real estate practitioner and he uses that creativity in ways that provide important advantages to clients. Creatively runs in Warren’s family! His uncle was Harnett T. Kane, an internationally-recognized investigative journalist and New York Times best-selling author of thirty books about the American South. Warren employs his own creativity by producing compelling marketing, both in print and especially online! His www.02038.com, is a highly effective website promoting the wonderful lifestyle afforded by the Town of Franklin, MA. And his Market Updates content on Massachusetts real estate trends gives home buyers and sellers alike the context they need to make more informed decisions about their housing investments. Warren frequently uses his abilities to devise resourceful solutions to the diverse challenges that threaten to complicate most real estate transactions. Warren has made real estate his career and won many sales awards in his 20+ years in brokerage, including the highly prestigious Chairman’s Circle Gold Award and the elite Centurion Award. Experience Warren’s refreshing difference today! 508-561-6259
"Your creative approach to all aspects of my move helped make the transition easy and pleasurable. You were recommended to me by a friend who appreciated your integrity, expertise, friendliness and conscientiousness - qualities that I have witnessed in abundance as we've worked together." -KB
Get creative with Warren.
You get more with Warren Reynolds than you do with other top real estate agents. You’ll find in Warren rare knowledge and experience dedicated to helping you achieve all the value that home brings. Warren has a law degree and 20+ years of home selling success in Massachusetts. His legal knowledge and decades-long experience in putting — and keeping — real estate sales together give him a better handle on the legal, practical and emotional dynamics of the real estate transaction. Warren uses these skills to empower clients to achieve more! He often anticipates and resolves problems BEFORE they can become serious impediments. Enjoy the sense of trust, security and control that comes from having a highly skilled expert at your side — talk with Warren today! 508-561-6259
"We have now bought and sold five homes. By far, you have been the best realtor we have worked with. Your professionalism and knowledge are so valuable to your clients. You made this process so easy. "-CB
Make better decisions and feel in control.
All real estate agents are legally and ethically bound to be fiduciaries acting in their client’s best interests. But many agents give their fiduciary duties short shrift in their quest for the quickest and easiest path to a closing. Not Warren Reynolds! His name stands for integrity and he takes his fiduciary duties to you very seriously. He’ll steadfastly put your interests first throughout your home purchase or sale. This may make Warren work longer and harder for you than most other agents would. But ultimately, Warren’s diligence and attention to detail is his commitment to an experience that transcends the sale. He wants you to have the confidence and peace of mind that comes with having a true fiduciary protecting you. Discover the difference of working with an agent who does not view you as just another opportunity for a commission – talk with Warren today! 508-561-6259
"Warren was always there for us. Throughout the process, Warren kept on top of all our concerns. Warren worked for us, and looked out for our best interest. He is a very professional and caring person." - BP
Feel safe and well taken care of.