Apartment market cooling down?:
People like Robert Kutner have been bemoaning Greater Boston's affordable housing shortage, blaming it partly on lack of federal housing support. Now comes this piece of news from Banker and Trademan
: The demand for apartments is definitely slacking. Here's a great example: "Constitution Quarters in Chelsea recently offered to pay a fee equal to two months’ worth of rent to brokers who showed apartments and secured leases through Aug. 31." OK, that's Chelsea
, you might say. But other area landlords and brokers are noticing the same trend.
What's going on? Of course, the poor economy is playing its role. Colleges in the city, under pressure from Mayor Thomas Menino, are now building more student dorms. And there's also an historic private residential building boom in Boston. Combine it all together, and you have a market (with a nudge from City Hall) reacting. No big federal programs. No return to rent control. Just good ole market forces and a wise shove from Mumbles. That's it. Boston-area housing prices, make no mistake, will remain high for a long, long time, but the "crisis" is slowly easing. And more private housing units and college dorms are on the way. (By the way, Banker and Tradesman only allows subscribers access to full stories. The link gives you a decent gist, though, of its Page 1 story, which Hub Blog read in its entirety in print.)