The national residential real estate market has become quite competitive in recent years, even with a slowdown reported in some markets in the last months of 2021. Many areas still feature dramatic increases in property prices combined with far too few units listed on the open market.
Throughout Massachusetts and especially in the Boston area, there is not enough residential real estate available to purchase, and the prices of the homes listed have soared in recent years. People who want to relocate to Massachusetts may struggle to find homes to purchase. Even those who already live in the community may have a hard time upgrading to a bigger house when they have a new baby or moving into a retirement home once their children move out.
New construction is one of the only ways to alleviate the extreme imbalance between supply and demand on the local real estate markets. Residential real estate projects add more dwelling units to local communities. Will there be more single-family homes erected in the near future, or are multi-family homes the priority?
There will be a healthy balance of single-family and multi-family units
What gets built depends both on local communities approving proposed projects and what builders think will produce a good return on their investment. If you look at nationwide statistics, the construction of single-family homes dramatically outpaces the construction of multi-family dwelling units, like duplexes or townhouses.
However, Massachusetts has a slightly different future plan for its residential property development. State and local initiatives mean that there will be substantial multi-family development in the upcoming years. There are several perspective projects planned in areas near public transit that could make affordable housing and life without a personal vehicle a reality for many.
Higher housing density does come with certain issues
Adding more living units to the same amount of space is beneficial in some ways and problematic in others. More multi-family units will mean more housing at a time when demand is incredibly high. New construction could help push prices back down to a more reasonable range.
Still, more people in less space will stress existing infrastructure and increase resource demands and local environmental degradation. Local property owners will have to consider these factors when deciding where to buy and when to sell their homes. Tracking local trends in real estate can help you make better decisions about one of your biggest assets.