High Housing Costs Create Problems for Millennials in Boston

Ed Greable Blogger August 16, 2017

 

According to a new Suffolk University/ Boston Globe poll, just under half of Boston voters are “very dissatisfied” with the city’s housing cost. Furthermore, more than 17.4 percent of voters listed housing cost as one of the issues that concerns them most, while at least 58.6 percent were at least a little dissatisfied with the general cost of living in the city. Considering that the city remains one of the three or four most expensive places to rent an apartment or to buy a home in the country, the results of these polls is not very surprising.

While residential construction is booming in Boston, it is not likely to bring down costs within the next few years. This is not good news in terms of attracting and retaining younger residents. In fact, according to a recent Abodo study, Millennials needed to save for an average of 18.4 years in order to have enough money for a down payment on a home in Boston in 2015. Since that time, at which time the average down payment in the Boston area was $85,943, prices have only gone up further.

Given the house buying situation in Boston, it is no surprise that most Millennials are choosing to rent instead. Due to the high rental costs, this is not an easy task either. As a result, many are forced to turn to relatives for help with making their security payments.

Corporate Rentals Further Tighten Boston Market

An apparent rise in the number of corporate rentals has further tightened an already tight Boston rental market. This is because companies that specialize in providing short-term housing for visiting professionals have been purchasing chunks of apartment complexes and then renting them out as a type of extended hotel-stay option. Many of these purchases have taken place within some of the city’s newer and better apartment projects, including the Watermark Seaport in the Seaport District and the Kensington in downtown Boston. The loss of these apartments only serves to further tighten an already tight market

While the city might eventually do something to address the rise in corporate rentals, there is little regulation regarding the practice at this time. As such, it simply comes down to whatever company can afford to purchase the blocks of apartments and turn them around as short-term rentals.

Report Finds Boston is a Top City for College Graduates

Despite the issues with housing costs, a recent survey conducted by SmartAsset has found that Boston is the ninth-best city in the United States for college graduates. The study involved looking at 108 cities in terms of job opportunities, affordability and opportunities for fun for twenty-somethings. The entire top ten list included:

  • Cincinnati, Ohio
  • Columbus, Ohio
  • Nashville, Tennessee
  • San Antonio, Texas
  • Pittsburgh, Pennsylvania
  • Seattle, Washington
  • Lexington, Kentucky
  • Austin, Texas
  • Boston, Massachusetts
  • Saint Louis, Missouri

Boston placed particularly strong in the area of employment opportunities. The city likely would have performed better if not for its high housing costs, with SmartAsset finding that Boston has the most expensive cost of living and the highest median rent of those included in the top ten.

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