Construction costs make it prohibitive to build middle class housing around Boston
WBUR - 11/13/2015
In most parts of the country, rising demand for housing results in increased production. But in Greater Boston, this hasn’t been the case.
“When we thought in the past, why can’t supply keep up with demand in the housing market, we now know the answer,” said Barry Bluestone, of the Northeastern University team who analyzed the data. “It can’t, because the costs of production are too high.”
Bluestone looked at more than 100 rental housing projects built over the last decade in Massachusetts and other states. He found that developers cannot build new housing in Greater Boston at reasonable price points.
“Unless we can find ways of bringing down land costs, zoning costs, construction costs, it will be almost impossible for any developer to put up housing in Greater Boston that working families can afford,” he said.