Posts tagged real estate development
FHA Plans to Back More Condo Loans - What Will the Effects Be?

The FHA plans to back 60,000 additional condo loans each year on top of the roughly 16,000 it already backs. So what exactly does that mean? In short, an FHA-backed loan only requires a 3.5% down payment and they often lend to people with lower credit scores. Both of these things combined will allow more first-time home buyers to enter the market because they don’t need to save as large a down payment or build up their credit history. This is especially true in larger cities across the US where home prices are rising and preventing many from entering the market. Read this article from the Wall Street Journal to discover what experts are saying the pros and cons of this policy are.

Read More
Boston Luxury Condos: Rising Prices as Number of Sales Drops

When you take a look at the luxury condo market in Boston, there is no sign of prices stagnating or dropping anytime soon. A recent market report from the second quarter of 2019 showed that the average sale price of luxury condos in the downtown area is up 22.8% annually and the median sale price is up 21% annually. The report attributes the rise in prices to a decrease in the number of sales which is down 14.9% annually. To read more, click here.

Read More
Can Millennials Afford Homes?

Millennials are in quite a different position than their parents and grandparents were when it comes to the prospect of buying a home. A recent report showed that in 1975, it took 9 years for someone earning the median salary to save up for a 20% down payment on a home (assuming they saved 5% of their income per year) and now it takes 14 years. This change is even more extreme in well-known cities across the US - 43 years in Los Angeles, 40 years in San Francisco, 36 years in New York, and 30 years in Boston. There are many reasons why this is the case such as a scarcity of housing and restrictive zoning laws. To read more, check out this article that summarizes Unisom’s report about the increasing gap between income and real estate prices.

Read More
The Problem with Boston's Zoning Approval Process

If you ask any developer in Boston what they think of the zoning approval process, I would guess that one of their first comments would be about how “political” it can be. A recent report by researcher Amy Dain looked at the zoning laws of 100 communities around Boston and found that “over a two-year period from 2015 to 2017, only 14% of multifamily units in the greater Boston communities Dain studied were permitted "by right".” That means the other 86% of projects were subject to the discretion of zoning boards - zoning boards that are often influenced by local politics. For a quick overview of the report’s findings, check out this article. For the full report, click here.

Read More
A Guide to Pre-Fab Building

There is a lot to consider when building a home and one of the first questions you might ask is whether to build directly on-site or pre-fab. Of course there are pros and cons to both options and if you are not in the home building business yourself, it might seem like an even more daunting decision. While a bit lengthy, this article does a great job of going through the decision making process and what to do if you ultimately want to buy a pre-fab home.

Read More
A Good Month for Home Building

After a few down months at the start of 2019, the construction of housing finally saw an uptick in April. Housing starts rose 5.7% across the country and “building in the Northeast increased at the fastest pace in nearly two years.” Take a read through this article for more commentary on these statistics.

Read More
Where Are First-Time Homeowners Buying in Boston?

Many are saying that there already is and will continue to be a wave of first-time homeowners looking to plant some roots in Boston. The economy is diverse and let’s face it, who wouldn’t want to live in the city of champions? But a bustling economy comes with a competitive real estate market and homes are often selling above the asking price. Check out this article to see what neighborhoods in and around Boston first-time homeowners are looking to buy.

Read More
Tension in Eastie - Can It Be Resolved?

Every developer in Boston knows what a hot market Eastie has become in the past five or so years. Every developer in Boston also knows that this development has been met with a lot of pushback from Eastie locals. But is that pushback merited? This article in Boston Magazine provides some great insight into the dynamics between locals, developers, and millennials and explains why a little understanding and appreciation of Eastie’s past might go a long way in bringing everyone together.

Read More