Boston Housing Crisis: 150,000 Units Short, Zoning and Permitting Issues
Boston has the 4th largest housing deficit in the US. And its not getting better.
Here is the data:
1) The Greater Boston area is short over 150,000 units for its population according to zillow.
2) Under 6,000 new units were estimated to be delivered in 2024 by Moodys.
3) Boston metro area saw a 38% year-to-date drop through March 2025, representing the largest decline since 2008!!!
Let that sink in.
Greater Boston area is 150,000 units short. It is not catching up, and even slowing down.
If you are a resident of the area and wondering why you housing costs so much... it's pretty clear ... it's a scarce commodity.
What can be done? We need to increase production substantially. The means clearing our the barriers. Right now the biggest are IDP (inclusionary development - i.e. the requirement that developers essentially build 1 loss making affordable apartment for approximately every 4/5 profitable apartments - that essentially stops most large scale construction).
And two the zoning and permitting processes have become much longer over the past few years. Takes way too long to get shovels in the ground.
Good news for home owners it helps keep home prices elevated. Bad news is its more expensive rents and harder to get on the property ladder.
Let's Let the Builders Build!
It also means there is loads of demand for loans from RD Advisors for rehab and bridge (renovation and conversion of existing, and soon mezzanine).
And significant demand for housing when its built.
Follow Sean Kelly-Rand on LinkedIn
Here is the data:
1) The Greater Boston area is short over 150,000 units for its population according to zillow.
2) Under 6,000 new units were estimated to be delivered in 2024 by Moodys.
3) Boston metro area saw a 38% year-to-date drop through March 2025, representing the largest decline since 2008!!!
Let that sink in.
Greater Boston area is 150,000 units short. It is not catching up, and even slowing down.
If you are a resident of the area and wondering why you housing costs so much... it's pretty clear ... it's a scarce commodity.
What can be done? We need to increase production substantially. The means clearing our the barriers. Right now the biggest are IDP (inclusionary development - i.e. the requirement that developers essentially build 1 loss making affordable apartment for approximately every 4/5 profitable apartments - that essentially stops most large scale construction).
And two the zoning and permitting processes have become much longer over the past few years. Takes way too long to get shovels in the ground.
Good news for home owners it helps keep home prices elevated. Bad news is its more expensive rents and harder to get on the property ladder.
Let's Let the Builders Build!
It also means there is loads of demand for loans from RD Advisors for rehab and bridge (renovation and conversion of existing, and soon mezzanine).
And significant demand for housing when its built.
Follow Sean Kelly-Rand on LinkedIn
