Boston residents have been going through a tough time. Speak to anyone from the city, and they are bound to bring up how bad housing prices are. It’s not just about buying properties that are expensive. Even renting has become inaccessible to many.
What happens when people can’t afford homes? Well, they end up sleeping in their cars or on the streets and begin a dangerous spiral of homelessness. Compared to last year, homelessness has increased by 42% in Boston, and the number of people living in emergency shelters has increased by 20%.
It’s about time we take a closer look at what’s happening in the city and understand the factors at play.
The Expectation of Rent Splitting Severely Hurts Individual Renters
Kate Mannelly, a high school teacher, faces a common hurdle that many Bostoners can empathize with. She hopes to move into her own apartment but one-bedroom options are simply too expensive. At a median cost of $2720, there are few who can afford to pay close to three thousand dollars a month for a tiny place.
Such prices have slowly been pushing people towards the outskirts of the city. Many renters have moved from Cambridge to Brighton when prices started to rise. Then, when the same thing happened to Brighton, people started to move towards Mansfield.
The way things are looking, it’s only a matter of time before Mansfield renters need to move again. It’s a terrible cycle that hurts single and individual renters the most.
Landlords seem to think that $3,000 is affordable. If two people split the rent, it works out to $1,500 each, which doesn’t seem too bad. However, for those who wish to live alone, it is simply not feasible.
Mannelly thought a home in Brighton would be ideal but the prices there were no longer affordable. This a sad and depressing reality for a lot of single Bostoners who feel betrayed by the city.
Strong Pushback Exists for Mayor Michelle Wu’s Rent Control Plan
Boston Mayor Michelle Wu has had a tough time passing her rent control plan. Wu plans to cap rent hikes at 10%, but Boston lobbying firms have done all they can to prevent this. The influence that powerful lobbyists have is truly remarkable.
Boston has always been home to great lobby firms. In fact, some of the top lobbying firms in Massachusetts operate here. Combined with an equally powerful real estate industry, lobbyists in Boston make a formidable opponent.
Reports suggest that the Greater Boston Real Estate Board (GBREB) has so far spent over $400,000 in lobbying efforts. That’s close to half a million dollars dedicated to stopping Wu’s rent control plan.
The effects of such lobbying speak for themselves. Despite the bill passing the Boston City Council in a 12-2 vote, it has been stopped by the state legislature. Now, it may be up to the state’s voters as a push for a referendum begins.
This isn’t the first time that critical policies have been influenced by lobbying firms in Boston. However, it is also worthwhile to note that certain lobbying efforts in the city have been commendable.
The Motion Picture Association in Massachusetts was able to save over 7,000 jobs due to the efforts of Corry Associates. From the Green Line Extension project to criminal justice reform, Boston lobbying groups have created change in several key areas.
Similarly, other lobbying efforts have helped protect beer franchise laws that help small craft brewers. One cannot deny that, for better or worse, every Boston lobbying firm has a crucial role to play in the city.
Key Takeaways
It remains to be seen how successful the push for a referendum will be. Ultimately, the people of Boston are craving respite with rental costs. The unfortunate reality of living in a big city is that there will invariably be someone who can afford the rent.
Landlords aren’t particularly afraid to keep raising rent because they know that finding tenants is easy. If rents were to hit $5,000, there would be many still willing to pay up.
More importantly, unchecked rental costs are bound to have long-term consequences. Political pressure to enact rent control is one of the early consequences that we are already witnessing. It often ends up affecting the investment climate of the city.
Additionally, the labor market will find it harder to retain employees who can’t afford to pay rent on minimum wage.
Eventually, the city will experience extreme economic disparity with only the far outskirts being viable for the average person. This is already a reality, but it can get so much worse.
Longer commute times, transportation difficulties, and homelessness are all serious challenges that lie ahead of Bostoners. Hopefully, lawmakers and other lobby firms will realize these dangers and act before it is too late.