Manikka Bowman
With over $7 billion in construction currently underway in Boston, we are witnessing this city transform before our eyes. This boom is not only taking root in downtown; it is also making its way to Boston’s beloved neighborhoods. Dorchester, Mission Hill and Roxbury – communities traditionally overlooked when it comes to development are among those seeing an influx of investment.
The need for new development can’t be understated. Boston’s population grew by 6 percent between 2010 and 2014, even as the region’s stock of housing continued to age. A steady stream of empty-nest Baby Boomers have been making their way into the city after downsizing their suburban homes. The region’s hospitals, universities and tech centers have worldwide appeal.
News that developers are investing in neighborhoods outside the downtown core is a good sign, since this period of growth has not been evenly distributed across the city. In fact, it comes amid a shift in the kinds of jobs that comprise our workforce. The new report “Building for the Middle,” commissioned by ULI Boston/New England, finds that between 1990 and 2015, Greater Boston’s number of high-income jobs increased by 33 percent, while low-income jobs rose by 40 percent. This has resulted in a hollowing out of middle-income workers, and a disproportionate growth in both low-income and high-income jobs.
Even as more people have settled into lower-paying jobs in food service, health care and tech support, fewer are working in skilled blue-collar jobs, with the exception of construction and building trades, fueled by our robust real estate market. According to the Association of General Contractors of America, the Boston area has seen an 8 percent increase in jobs from last year. Still, the demand for tradesmen to keep up the furious pace of development in our region is outpacing supply. Filling these jobs in a timely manner is challenging.
Limitless Opportunities
According to David Borrus, business agent for Pile Drivers Local 56 of the New England Carpenters Union, “There are days when I can’t fill positions. We are experiencing a boom, and the opportunities are limitless if we can get more individuals interested in construction. It’s about getting in during a good stretch. Booms and bust come and go, but riding and managing the market is key to being a part of the real estate profession.”
It’s a competitive business, and there is pressure among the real estate community to deliver quality projects at this point in the market cycle.
ULI Boston’s District Council Chair Maura Moffatt, who is also managing director at Synergy Investments, an owner and operator of commercial properties in Boston, sees the problem firsthand.
“As a commercial landlord, we see how the challenge of obtaining labor is impacting contractors, who are working at capacity and are limited in their ability to expand to meet the needs of a robust commercial real estate market,” she said. “The demand is here, but meeting those needs promptly has proven to be difficult.”
If the region wants to keep pace and be prepared for the next boom – as well as rebuild stable middle-income jobs – we must figure out strategies to ensure our future workforce is positioned to meet the multiple occupational needs within the real estate field. Even as images of our skyline and neighborhoods are altered using computers and augmented reality, the real changes come from workers, who use their hands and materials to make those virtual buildings real.
Manikka Bowman is manager of policy for ULI Boston/New England.
