The Boston Housing Market in the US is the most difficult to break into, making the city the most expensive to live in. The prices of housing stock in the Boston Housing Market are on the rise in spite of Massachusetts being the only state in US to lose population for rocketing costs of living. This is mainly because the supply of housing stock in the Boston Housing Market is much lower than the demand of different types of housing.
Boston, the Capital of the Commonwealth of Massachusetts is dependent mainly upon its numerous colleges and universities for these institutions employ a large portion of the city's population besides drawing in high-tech industries to the region. Financial Services (mutual funds and insurance) as well as Tourism constitute the other significant sources of income for the city.
It is generally the younger generation people who cannot afford to buy into the high priced Boston Housing Market that are moving out to other states. Though apparently this may help by bringing down the house prices, in actuality it is causing infinite harm to the Commonwealth of Massachusetts by reducing its workforce.
The need to build more houses to shelter the working families, belonging to the younger generation has gained utmost importance to the sustenance of the region's economy.
In Boston it has become cheaper to rent than to buy houses. In the Boston Housing Market numerous houses are lying vacant and the number is growing by the day. More and more housing agents are telling sellers to expect lower prices from the sales of their houses. This in turn is adversely affecting the already dull economy of the Commonwealth.
The speculative situation of the Boston Housing Market is basically caused by:
- rising interest rates
- slow job growth
- soaring energy costs
With the Boston Housing Market rendered into a never before "buyer's market" one can only hope for it to improve in 2007.
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