MA Real Estate is CRAZY (Boston, Newton: middle-class, apartment, rent)

[bjimmy24]

Prices always go up though, that's healthy and normal.

[massnative71]

Originally Posted by bjimmy24

Prices always go up though, that's healthy and normal.

As long as the end result is sustainable.

[BostonMike7]

But the rate at which they are going up is crazy. My neighborhood is actually nuts right now. Three houses sold within the last 9 months all over asking. Based on what they sold for, how they comp, and with my sweat equity and updates I'm fairly confident I could sell my house for $100k over what I paid for it 3 years ago.

Granted whatever I were to buy next would probably have had gone up the same amount. Plus moving sucks.

[bjimmy24]

Originally Posted by massnative71

As long as the end result is sustainable.

Thank God we have been spared the curse of low prices!

[jayrandom]

Originally Posted by bjimmy24

Thank God we have been spared the curse of low prices!

The curse is no jobs. Low prices are just a side effect.

[Vanderbiltgrad]

Boston real estate was expensive in the 90s when I lived in Wellesley cannot image what it costs now to live in Wellesley for a smaller home

[timberline742]

Originally Posted by jayrandom

The curse is no jobs. Low prices are just a side effect.

So true. You want affordable prices. Find a place with a poor economy. Heck, that's why I'm in Providence. But even here, people are mortified at the prices; but that's because the wages here suck and people from Boston are moving here and commuting and driving prices up. No jobs or jobs with low wages will get you cheap real estate. That's not very desirable.

[massnative71]

Originally Posted by timberline742

So true. You want affordable prices. Find a place with a poor economy. Heck, that's why I'm in Providence. But even here, people are mortified at the prices; but that's because the wages here suck and people from Boston are moving here and commuting and driving prices up. No jobs or jobs with low wages will get you cheap real estate. That's not very desirable.

But some areas happen to have good wages and jobs, while remaining relatively affordable (TX cities come to mind). Also, there comes a point when a place becomes unaffordable to a point where it starts suffocating the economy. Don't know if Boston area is there yet, or how close it is, but it will happen. When the middle class can no longer afford to live there (never mind the "servants"), things really start to get ugly.

[jayrandom]

Originally Posted by massnative71

But some areas happen to have good wages and jobs, while remaining relatively affordable (TX cities come to mind). Also, there comes a point when a place becomes unaffordable to a point where it starts suffocating the economy. Don't know if Boston area is there yet, or how close it is, but it will happen. When the middle class can no longer afford to live there (never mind the "servants"), things really start to get ugly.

It’s a tough balance between overheating like coastal cities and decline like in the rust belt. Like everything it’s supply and demand, the economy provides the demand but there are problems on the supply side that keep prices higher than they could be.

SF gives a good reference point. It’s much crazier there and they have a hotter economy than we do. Housing unaffordability may slow it down a bit but not enough. It can be really ugly if you’re not hooked into a high-earning field or didn’t buy decades ago.

[bugelrex]

If you work in high tech, biotech or medical then metro boston is actually down right affordable compared to sf bay area and NYC. Watch those cities as leading indicators