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Boston mayor announces residential conversion program for office buildings

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371–380 of 413 posts

Re: Boston mayor announces residential conversion program for office buildings

#371

Earlier quoted context omitted.

It's not clear that you can meaningfully effect availability of "regular" housing by building any reasonable number of luxury homes. Slightly reducing the cost of luxury apartments may attract more buyers from outside the city, average the rate of vacancy may increase without the price going down much. They can be purchased by the rich to be used as unlicensed hotels aka airbnb. They can be ought up as "investments"…

> They can be purchased by the rich to be used as unlicensed hotels aka airbnb. They can be ought up as "investments" and not effectively rented out effectively enough as long as you don't build so much you literally flood the market. There's a natural floor to this though. For example, if Boston built 3 housing units for every human being on the planet, there would hardly be any problem even if every person wanted t…

We really just need to build in the Boston area. I’m politically pretty close to full on communist but all the policies I’ve seen around creating affordable housing are failures from my analysis.

Rent control changes who gets a home from a decision of whose wealthiest to whose luckiest which isn’t any morally or functionally better. Subsidizing or requiring developers to have “affordable” units in developments either offloads the cost to the other purchasers which will increase the average unit price in the area, which will cause people who used to be able to afford a home to slide down into too poor to afford one. All that’s doing is just moving around who gets to lose when it comes to this scarce resource.

The only answer to a scarce resource with high demand is to produce more of it. Unfortunately Boston, like most US cities, is full of nimbyism. It’s exacerbated by the fact that existing homeowners tend to have more political power just by virtue of the fact that they are more tied to the location and have a vested interest in voting in the area, vs renters who are more likely to up and move instead of invest time in local politics.

I also harp on the luxury housing building quite a bit. Emotionally it hurts to see only luxury housing being built when there is a housing crunch hurting the poor or middle class. The pragmatic bit however is that developers are always going to be incentivized to build luxury housing since it nets them the most profit. These building eventually turn into non luxury housing as the building age and the owners decide to not repair the unit to spec, or standards change and what is considered high end today isn’t in 20 years. We should stop fighting the natural incentives here with developers and lean into them to just build build build, imo.

The policy decisions that I think require actual thought are more along the lines of zoning and standards. Policies that require parking spots for every unit even when they are next to subway stations for instance hurt density a lot. Zoning being in the hands of towns who can act in a parasitic manner is also something that needs to be addressed, with my preference being something more along the lines of Japan’s zoning policies

Re: Boston mayor announces residential conversion program for office buildings

#372
post #189

Earlier quoted context omitted.

I toured a piece of property at the border of Charlestown and Somerville near a big T stop. There was an empty lot next to the tracks that was owned by the MBTA on paper. But de facto, the neighbor and was clearly using the entire massive lot as an extended back yard (they even had a garden shed and paved parking on the MBTA owned lot). Looked up the property records. Either a HIGHLY coincidental name clash, or there…

If you are talking about a triangle shaped lot on the corner, which is across the street from the lichmere stop of the green line... That lot was the lichmere stop of the green line until about two years ago. And was the lichmere stop for decades. Once torn down it was used as a gravel pile and support area for MBTA work. Recently that corner had the traffic pattern altered a bit with a new light and cross street. Yo…

I’m surprised that gone done already. Haven’t been in the area since 2021. You can even see n the street view just moving back and forth the tracks on one side of the street and then the other.

Re: Boston mayor announces residential conversion program for office buildings

#373

Earlier quoted context omitted.

People aren't "projecting" demand, the demand is being driven by the market. Downtown apartments (in good condition) are expensive because they are in high demand while office space is getting harder and harder to fill. If you own a bunch of downtown commercial real estate, you don't need to be a business guru to see that you could be making a lot more money if you could rent that space out as apartments.

// Downtown apartments (in good condition) are expensive because they are in high demand Yup, my question is - do we expect this to hold when downtown is no longer the place to be for work.

It’s the place where shit is though, even beyond work.

My wife and I moved out of Boston due to the pricing, but if we could afford it while maintaining our current savings rate we’d move back in a heartbeat even though we both have remote jobs. The density allows for so many choices in food and entertainment that you can’t get in the suburbs or countryside. And that’s without even accounting for the lack of needing a car which is a constant headache in terms of maintenance and logistics that I wish I could just be rid of

Re: Boston mayor announces residential conversion program for office buildings

#374
post #369

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Somerville around Sullivan square. Was paying 3200 a month all in on a 1200 sq ft townhouse. Looked at a few of the homes around our street and they were selling for 700k-1million and off market in a few days after posting. This was all a few months before covid. We found some places we could afford but they either made our commute fairly long(>1 hour each way), would stretch our budget to have zero tolerance for eme…

This describes my brothers situation pretty much. People also have a lot of received wisdom of how they were brought up in the burbs and just assume you HAVE TO buy. There's plenty of markets where prices/rent are upside down and you might as well rent indefinitely. People forget you are either renting housing or renting money to "own" housing. If you are disciplined enough to save the difference, renting can be bett…

That was where we ended up on the math. We liked the idea of owning our own home and building equity in it, but the cost was too high and like you said, we couldn’t conclude we’d be in the area in even 2 years. Covid hitting a few months after we started looking also definitely helped solidify that opinion and things might have turned out differently if we didn’t have a worldwide plague causing me and my wife tons of uncertainty in the future

Re: Boston mayor announces residential conversion program for office buildings

#375

Earlier quoted context omitted.

In Hong Kong, pre-handover, I stayed in a windowless hotel room.

I stayed in one in london last year. It was great until noisy people came back at 2am

2 great sleep killers: light and noise. "Windowless" only fixes one.

Re: Boston mayor announces residential conversion program for office buildings

#376

Earlier quoted context omitted.

A definition of demand: Demand is an economic concept that relates to a consumer's desire to purchase goods and services and willingness to pay a specific price for them. The poor do not have the willingness to pay a whole category of prices, as they are unable to finance it. Creating luxury accommodation can increase supply, but as the decrease in price does not necessarily put the older accommodation within reach,…

If there are 10 houses available and there are 12 families looking to buy then the they will bid up and the 10 wealthiest families win. If you build 2 luxury homes, it doesn’t matter if poor families 11 and 12 can’t afford them, because 1 and 2 can, which makes them not bid on normal house 1, 2, …, n lowering all housing prices.

Poor people don't buy accommodations they rent them in your example where demands exceeds supply owners of accommodations can jack up prices to whatever the poor people can pay without living on a street corner hoovering up any benefit obtained in your example.

Re: Boston mayor announces residential conversion program for office buildings

#377

Earlier quoted context omitted.

What will the wealthy family do with their 3 houses? If they rent them out that’s still good for the poor family (indeed perhaps they couldn’t afford to buy anyway).

on the other hand, if they don't rent them out they can let them appreciate in value, wait for more wealthy families to show up.

This is circular reasoning because homes are rising in value due to lack of supply. With enough supply it would not make sense to sit on an empty home as it would not make a good investment.

Re: Boston mayor announces residential conversion program for office buildings

#378

Earlier quoted context omitted.

Agree - it's the 'Trickle-down Effect' except with property instead of wealth.

No, it's just basic supply and demand.

For every "basic supply and demand" there is a "markets can remain irrational longer than you can remain solvent"

Re: Boston mayor announces residential conversion program for office buildings

#379
post #92

Earlier quoted context omitted.

The original comment did not specify that. It may be obvious to you or me but not to most people. Advocates for improved cities need to understand that are less likely to receive pushback if they are clear and concise from the get go.

The original comment was a single sentence, not a thorough advocate proposal.

My point exactly. Glad we have understanding.

Re: Boston mayor announces residential conversion program for office buildings

#380

Earlier quoted context omitted.

High-rises are not good for residential purposes. They are seriously isolating.

Versus what?

Shorter buildings, multi-family homes, etc. I worked for someone (with plenty of money) who had a house in a nearby small city but wanted a place in Boston. He lived in one of the luxury high-rises for a time but he really didn't care for it. I forget if he used the "isolating" word but he definitely said he felt apart from the little people scurrying around on the streets below. He ended up buying a condo in one of the old brownstones in the city.
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