A better way to put it would be don't fall more, since Boston area home prices are down about 12% (and only 12% - much less than other parts of the country), but the point is applicable nonetheless.
Simply put: We have an affordability problem in the Boston area. Prices of homes remain out of the realistic reach for
Why?
According to the work of Edward Glaeser (Harvard economist) and Joseph Gyourko (Wharton School real estate and finance professor), the problem is due to a one size fits all federal housing policy. In their new book (Rethinking Federal Housing Policy: How to Make Housing Plentiful and Affordable), they conclude
http://rismedia.com/wp/2008-12-10/rethinking-federal-housing-policy-housing-experts-find-local-building-laws-inflate-prices-in-affluent-markets/
Ed Glaeser
Why is this an issue? Don't we want prices to stay up? Doesn't that create wealth? Maybe that's true, but we have a long run problem - if prices continue to remain out of reach for first time buyers
There is a conference tomorrow for anyone interested: Smart Growth, Smart Energy Conference at the Boston Convention & Exhibition Center.
What are the solutions for Massachusetts?
1. More, better, and cheaper "starter homes" and "workforce housing" for first time buyers.
2. Communities with areas set zoned specifically for higher density housing. Bring back old New England "Town Center" style neighborhoods with common greenspace and parks. Like you see in and around Concord Center for example.
What good is one acre zoning? Why not create a community of homes on smaller lots, in mixed use areas with neighborhood amenities, shops, and restaurants, prefereable located near a transportation hub. Not only is it cheaper to build, but it is better for the environment and promotes more "community". Who needs a huge back yard when you live within 1/2 mile to a great neighborhood park and greenspace. It is a much more efficient use of land to share greenspace and outdoor space rather than horde it on individual lots.
Look at traditional New England communities like
That's the type of thing that's driving people into Boston (the city itself). More and more people are looking for closer living, more tight knit communities, more access to shops, restaurants, and cultural amenities.
I am by no means saying that we do away with large homes on large lots. This is America and people are free to live how they want. I personally have zero interest in that type of home, but i recognize that some people may. What I am saying is that we shouldn't ONLY have large homes on large lots like we have right now caused by exclusionary and archaic zoning regulations.