BOSTON — The cost of housing is among the top issues in the Boston area.
That applies to both renters and buyers.
Finding an affordable apartment in Boston is like searching for the proverbial needle in a haystack said one man in Jamaica Plain.
“If you want to find a place you can afford, I mean on your own, that’s impossible these days. Maybe you’ll find a couple of roommates, and if so, you’re still not living in a good building.”
Another man said it’s a hassle. “I am trying to find a place that’s affordable and accessible by public transit. It’s really a definitely difficult process.”
“Prices are skyrocketing. People’s pockets are suffering, and they have no place to live,” added another man we talked to on Centre Street.
“Boston is ending the year as the 4th most expensive rental market, ranking behind New York City, Jersey City, and San Francisco,” said Crystal Chen, a spokesperson for Zumper, a website that analyzes the nation’s rental markets.
She doesn’t see big rent increases on the horizon for the coming year.
That’s good news in Boston where 2/3rds of the city’s residents rent apartments.
“There could potentially have been a rent ceiling that was hit that people are willing to pay before they started looking elsewhere for more affordability,” Chen explained. “And there’s also some new supply coming online in Boston that is helping to meet some of that demand. I think over 13,000 units are under construction in Boston right now.”
Building all kinds of housing is important in Massachusetts which is suffering from chronically low inventory.
Redfin chief economist Daryl Fairweather will be watching to see if President-elect Trump’s policies hamper the construction industry.
“What I’m most concerned about are Trump’s plans for tariffs and deportations because that would directly impact the building industry. Higher materials costs would add to the cost of construction and bring down new buildings. And then there is the lack of labor because a third of the construction industry is immigrants.”
For people looking for a mortgage in 2025, Fairweather doesn’t see lower interest rates on the horizon.
“I think it’s going to be more of the same. Mortgage rates are back up to 6.7% for a 30-year fixed which is I think higher than a lot of people were hoping for.
Realtor Emily Clark, President of Berkshire Hathaway/Robert Paul Properties, thinks rates would need to drop below 5.5% to really prompt current owners to list their homes.
She says many of those owners have hit the pause button for a couple of years now because they feel trapped with their own 3% mortgages.
But Clark thinks many homeowners really need to move now because their family situations have changed. As a result, she says inventory levels are starting to drift up.
“People have really been holding onto those really great fantastic rates, but their life has changed,” explained Clark. “And so, you have to make a decision at that point of is that rate going to lock you in or is your life going to move on and change. Interest rates will go up. Interest rates come down. I say marry the house, date the rate.”
As for prices, Clark told Boston 25 News she only expects to see a slight increase in the coming year.
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