Boston Pads

Full post: https://bostonpads.com/blog/boston-housing-market/how-is-inflation-affecting-contractors-and-boston-real-estate/ Without a doubt, 2022 will go down in history as one of the worst years for inflation in modern U.S. history. With the Consumer Price Index above 8% since March, we’re seeing the highest inflation levels in 40 years. Thanks to poor fiscal responsibility and highly questionable energy policies, rampant inflation and supply chain bottlenecks are starting to cripple our future supply of new products introduced into the Boston housing market. The cost of building materials is increasing by a much larger margin than CPI. The current PPI for New Nonresidential Building Construction is up by 24% over the past year. That triples the price increase for consumer products (CPI). Housing supply in Boston is already at a critical shortage, and now developers are faced with even more fiscal barriers in creating new housing inventory for Boston’s growing population. We could ...

Full post: https://bostonpads.com/blog/boston-housing-market/how-is-inflation-affecting-contractors-and-boston-real-estate/ Without a doubt, 2022 will go down in history as one of the worst years for inflation in modern U.S. history. With the Consumer Price Index above 8% since March, we’re seeing the highest inflation levels in 40 years. Thanks to poor fiscal responsibility and highly questionable energy policies, rampant inflation and supply chain bottlenecks are starting to cripple our future supply of new products introduced into the Boston housing market. The cost of building materials is increasing by a much larger margin than CPI. The current PPI for New Nonresidential Building Construction is up by 24% over the past year. That triples the price increase for consumer products (CPI). Housing supply in Boston is already at a critical shortage, and now developers are faced with even more fiscal barriers in creating new housing inventory for Boston’s growing population. We could ...

Full post: https://bostonpads.com/blog/boston-housing-market/how-is-inflation-affecting-the-boston-housing-market/ This year has brought with it some economic uncertainty that will inevitably affect the local housing economy. Last month, the year-over-year consumer price index was up by a staggering +8.3%, indicating that post-pandemic inflation concerns are far from over. The Fed has been steadily raising interest rates this year as a result. But how exactly will this affect the Boston housing market? Inflation will affect the Boston housing market by causing home sales to drop and median sale prices to decelerate in 2022. The combination of higher interest rates and high home prices will push many buyers out of the market this year. Shortages in labor, materials, and diesel gas will push up the cost of development and property maintenance, which will help to keep home prices growing this year, but at a significantly lower margin than previous years. Rent prices in Boston will grow...

Full post: https://bostonpads.com/blog/boston-housing-market/how-is-inflation-affecting-the-boston-housing-market/ This year has brought with it some economic uncertainty that will inevitably affect the local housing economy. Last month, the year-over-year consumer price index was up by a staggering +8.3%, indicating that post-pandemic inflation concerns are far from over. The Fed has been steadily raising interest rates this year as a result. But how exactly will this affect the Boston housing market? Inflation will affect the Boston housing market by causing home sales to drop and median sale prices to decelerate in 2022. The combination of higher interest rates and high home prices will push many buyers out of the market this year. Shortages in labor, materials, and diesel gas will push up the cost of development and property maintenance, which will help to keep home prices growing this year, but at a significantly lower margin than previous years. Rent prices in Boston will grow...