In a speech delivered on March 25 before the Boston Municipal Research Bureau, Mayor Thomas M. Menino unveiled an ambitious plan to add 30,000 new housing units in the city by the year 2020. According to city figures quoted by The Boston Globe, nearly 24,500 new residential units designed for low-income families, college graduates, seniors, students, and homeless were permitted by the city between 1999 and 2012—most of them privately financed and valued at a combined $8.4 billion.
The “Housing Boston 2020” initiative aims to continue this positive development trend and create more housing options to attract and retain multiple demographics, especially young professionals in the 20-34 age bracket who choose to work and live in Boston.
Menino’s housing plan will involve experts inside and outside of government to work on finding the best development alternatives for a city whose housing supply has grown faster than at any time in the last five decades.
According to a recent market report by Marcus & Millichap, the past two years showed positive employment trends and above-average rents in the Boston Metro area, which paved the way for new privately financed construction projects. The report estimates that developers will complete over 4,500 apartments in 2013, more than twice the number of units completed in 2012.
Chart courtesy of Marcus & Millichap