Study: Boston Luxury Housing Supply Doesn't Satisfy Local Demand
Tim Logan shares news of research from the Institute for Policy Studies in the Washington, D.C., which finds deficiencies in the city of Boston's luxury housing market.
"Many buyers of condominiums in the new luxury towers sprouting around Boston are either part-time residents or investors — sometimes with no clear connections to Boston," explains Logan of the study's findings, and "the city’s high-end building boom is doing little to help local residents."
After examining property records for 1,800 condos in 12 newer luxury buildings in Boston, researchers "found that more than one-third of the units are owned by limited liability companies, trusts, and other business entities that allow buyers to obscure their identities."
"Just 36 percent of owners requested the property tax exemption the city offers homeowners — a sign that the owners may live elsewhere most of the time," according to Logan.
The findings push back on the pro-development idea that new housing at the higher end of the market filters housing supply down to more affordable prices.
Since Logan broke the news of the study, Boston Mayor Marty Walsh told WGBH News that "plans to look at his policies affecting high-end construction," but isn’t interested in a tax on high-end real estate transactions.