It might come as a surprise… Lately, experts have noticed a real Condo shortage in Boston.
Especially when it comes to luxury properties, there is a real Condo shortage in Boston.
What might cause the Condo Shortage in Boston?
Even if many projects have been completed the last few years. Most of them remain only rentals… And that’s not all: the two major new condo towers the Millennium Tower and the Four Seasons -now under construction- won’t be open until 2017 or 2018. In addition already half of the towers’ units have been pre-sold, leaving just a couple hundred condos still potentially available…
Even though new condo towers are also likely in the works, they are still in the early planning stages.
Some experts argue that the source of this shortage is directly linked to the almost impossibility to build condos and properties in downtown Boston for a reasonable price. Investors and developers would rather focus on the city’s suburbs than struggle to purchase overpriced parcels downtown.
What are the consequences of the Condo Shortage in Boston?
As the number of condos on the market downtown is almost minuscule, we can be sure to witness soaring prices and fierce competition for the few listings on the market in the following months.
The situation was already very similar last year and it is just getting worst… Indeed when we take a look at last year’s graph below it seems unrealistic to expect for the prices to go down while the shortage is just getting more and more blatant.