 |
bostonbubble.com
Boston Bubble - Boston Real Estate Analysis
|
|
SPONSORED LINKS
Advertise on Boston Bubble
Buyer brokers and motivated
sellers, reach potential buyers.
www.bostonbubble.com
YOUR AD HERE
|
|
DISCLAIMER: The information provided on this website and in the
associated forums comes with ABSOLUTELY NO WARRANTY, expressed
or implied. You assume all risk for your own use of the information
provided as the accuracy of the information is in no way guaranteed.
As always, cross check information that you would deem useful against
multiple, reliable, independent resources. The opinions expressed
belong to the individual authors and not necessarily to other parties.
|
| View previous topic :: View next topic |
| Author |
Message |
SkyHighRents
Guest
|
 Posted: Sun Jan 06, 2008 4:28 pm GMT Post subject: No deflating Bubble in Boston area apartment rents |
 |
|
http://www.bostonherald.com/business/general/view.bg?articleid=1064833
Is there a correlation between rents and cost of property
or is rent simply priced as to what the market will bear ??
One would think falling housing prices would equate
to lower rents .
Cause-and-effect relationship or simply supply and demand
From the Boston Herald newspaper:
| Quote: | Boston area apartment rents will rise next year as a tight market gets even tighter amid a drop in new construction, a new report finds.
Rents will jump 3.3 percent this year, driving up the average asking rent to $1,753 per month, real estate investment firm Marcus & Millichap reports.
Driving the rent increase is an ongoing drop in the number of available apartments, coupled with modest job growth.
Also, as builders get skittish amid tough times in the condo and home sales market, construction of new apartment buildings and high-rises will also dip.
New construction will drop to 3,000 units, down from 5,100 last year.
While not necessarily great news for renters, it is a different story for investors interested in buying apartment properties, according to Marcus & Millichap.
“Apartment investors are expected to stay active in Boston, attracted to the market’s steady pace of job growth and low housing affordability,” said Gary Lucas, general manager of the Boston office of Marcus & Millichap.
The rising rents and falling vacancy rates expected for the new year are pat of a larger recovery in Boston’s apartment market that began 18 months ago, says Paul Donahue, a senior vice president in the Boston office of CB Richard Ellis.
Rents had stayed flat from the recession of 2001 through 2005.
It was also the same period when the real estate sales market boomed, leading to rapid turnover among renters as they left to buy homes.
Now, with home and condo sales falling, many are staying put in their apartments, Donahue said.
Landlords are now pulling back from concessions they had previously offered to lure tenants, such as one or two months free rent.
And while new apartment construction is expected to fall, developers are still pushing ahead with a number of big rental projects, including some in downtown Boston.
That stands in contrast to the new home and condo market, where new construction had all but ground to a halt.
“We are seeing a more positive market really over the past 18 months for apartment and indirectly for apartment renters,” he said.
|
|
|
| Back to top |
|
 |
admin
Site Admin
Joined: 14 Jul 2005
Posts: 1826
Location: Greater Boston
|
| Posted: Thu Jan 24, 2008 10:41 pm GMT Post subject: |
|
|
Thank you for taking the time and effort to bring this article to everybody's attention. I would, however, like to request that when you want to share an article that you not copy and paste such a large portion of it into this forum. This might not be compatible with US copyright law. Please limit verbatim excerpts to one or two paragraphs at most and provide a link for the remainder of the article. (If you happen to be the original author or have obtained permission from the author to reprint more, then add "reprinted with permission.")
To the copyright holder of the original article, if you feel that the excerpt in this thread is being used in a manner that is inconsistent with terms that you allow for reproduction, please contact me so that it can be corrected. Either post your request within this thread or email me directly at admin@bostonbubble.com
Thanks,
- admin |
|
| Back to top |
|
|
Ranunculus
Guest
|
| Posted: Mon Jan 28, 2008 5:54 pm GMT Post subject: |
|
|
| When the market is tanking, people are getting foreclosed upon and losing their houses, others can't get mortgages, and others are scared to buy...which results in more people wanting to rent...and thus, higher rents. |
|
| Back to top |
|
|
Dorchester Grandma
Guest
|
| Posted: Mon Jan 28, 2008 10:37 pm GMT Post subject: Rising Rents |
|
|
How many working families can afford $1700 per month and still feed their kids? Section 8 pays a landlord that amount for a two bedroom and many landlords in Dorchester advertise for section 8 families.
A young woman from Iowa told me that if you work in a Burger King in Des Moines, you can still afford to have a roof over your head. Impossible here. Hopefully more people will get fed up and leave Boston.  |
|
| Back to top |
|
|
Guest
|
| Posted: Mon Jan 28, 2008 10:54 pm GMT Post subject: |
|
|
The number one reason rents are so high
Section 8
End section 8 and rents will fall  |
|
| Back to top |
|
|
Section 8
Guest
|
| Posted: Tue Jan 29, 2008 12:16 am GMT Post subject: Dorchester Grandma |
|
|
I agree. Section 8 determines the "market value". Though the tenant pays part of the $1700, the taxpayers foot the bill for most of it. A lot of section 8 apartments, though deleaded, would not meet the standards of renters who are able to shell out that kind of money.
Slumlords Gerald and Elaine Schuster were great pals of the Clintons making huge campaign contributions. A Democrat in the White House means more money for section 8 housing and more money in the pockets of the Schusters and others who have exploited the need for affordable housing in Boston.
By the way Hillary Clinton is in no position to be casting stones at Obama for receiving campaign contributions from slumlords.
http://www.villagevoice.com/news/9950,vest,11023,5.html |
|
| Back to top |
|
|
|
|
You can post new topics in this forum
You can reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
Forum posts are owned by the original posters.
Forum boards are Copyright 2005 - present, bostonbubble.com.
Privacy policy in effect.
Powered by phpBB © 2001, 2005 phpBB Group
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
