Massachusetts, often referred to as Taxachusetts by state residents, has never (at least not in this century or the previous one) been considered an inexpensive place to live. As you have probably gauged from the moniker, Taxachusetts, the money residents pay in local and state fees is partly responsible for the high cost of residing in the state. Sure there are some places where the cost of living falls comfortably below the national average, but as a whole, residents of the state are accustomed to paying more for life’s necessities.
In large part, the amount forked out for living space in the Boston Metropolitan area and on Cape Cod has always been above the norm in the state. Now there are other factors driving up the amount of money residents pay for apartments and houses, especially in the Boston area.
The decline in the housing market shows no signs of an immediate turn around. In Boston the problem is going to get worse before any relief is felt, according to a study conducted by The Boston Foundation. Because the economy continues to lag, there is little chance of a major positive change in the housing market. In Massachusetts fewer buyers are taking advantage of the current market and more and more people who are in homes and in the process of purchasing them are finding they can no longer afford the mortgage payments.
As if this is not bad enough, there is another factor that is driving up prices even in this market. Common sense says in a market such as this, prices should be dropping in all areas of housing. However, a growing number of college students in the state, which traditionally has had a healthy supply of colleges and universities, continues to drive up the demand for low cost apartments in Massachusetts as a whole and Boston in specific.
With a decline in the sale of new homes and a record number of foreclosures, apartments are the logical place for individuals to seek housing. Add the student population to the mix of people who can’t get loans to purchase housing and the people who have left homes because of foreclosure in Massachusetts and you can understand why you will probably be paying higher prices if you choose to rent an apartment unit in the state.
Fortunately, the state does offer reduced housing to many low-income families and individuals who would otherwise be unable to afford to rent a place in the state. Public housing is particularly important in a city as large as Boston where many citizens live at or below the poverty level, and, as mentioned earlier, the cost of living is as high as it is.
What is happening in Massachusetts goes against the trend, and is a scary situation for many residents. To have such a weak economy as the country is experiencing now and to see low availability of apartments and the rising prices that must be paid for units is unusual to say the least.