Needham MA - city trying to slow home expansions/builds?

Question

Just curious if anyone is familiar with Needham? Someone mentioned to me that the city is trying to slow down on expansion of homes to encourage affordable housing. Anyone know if there is any merit to this rumor?

Peter Vuong · Answer

@Manny Cirino and @Mike Hurney thanks for the insight and reference! I really appreciate it!

Mike Hurney · Answer

@Peter Vuong

https://www.bostonglobe.com/business/2015/11/20/with-restrictions-types-units-affecting-projects-housing-construction-plunges/oJFoASH17KgVo9iD3QLyQK/story.html

Mike Hurney · Answer

@Peter Vuong A lot of cities and Towns are trying to do this.

See the Boston Globe RE article 11/22/15 of how regulation has strangled new housing.

Manny Cirino · Answer

@Peter Vuong I am not familiar with your area but I can tell you that I have been having similar conversations about the speed of the growth in the market. I am seeing everyone who was underwater either breaking even or gaining equity. And sales prices being pushed up higher in higher. From what I am seeing I think investors should start shifting in to flipping land instead of houses. Why? Because the prices on housing are increasing and I feel that after 2016 we will start to get in to a high risk area were many investors can find themselves underwater again. With land it is a less capital to get in to and New construction is going up everywhere. I think Education needs to be put out on how to evaluate land deals I have looked and there is not much out there.

I say that to say that I don't think slowing down expansion make affordable house, it actually makes it more expensive because the supply is being limited. The more inventory there is on the market, the more completion, the lower the prices stay. Once you stop the growth and expansion you reduce the inventory which cause prices to sky rocket. In my opinion the theory is baloney and they want to see Real Estate gain value in the area.

Needham MA - city trying to slow home expansions/builds?

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