Bubble, Bubble, Boston's In Trouble
Check out www.bostonbubble.com, and you'll see that the news on the housing market--in the short term anyway, isn't good. For example:
- Boston has been ranked the #1 most vulnerable housing market for potential price declines by Kiplinger's Personal Finance and the PMI Group.
- The Wall Street Journal has identified Boston as one of the metropolitan areas in the US where it is cheaper to rent than to buy. Their data goes from 2001, when it was already cheaper to rent, to 2004 when the difference was even more pronounced.
- Consumer Reports has rated real estate in the Boston market as "Overpriced" and pegged it at 24% over the affordable price as of Q4 2004.
My question: Deval Patrick, what are you going to do to solve this problem? So far, his plan is to solve the oversupply of housing by...building more government-subsidized housing! That'll do it!