More people want to buy a home than ever before, with our “K-shaped” recovery sending demand through the roof. Yet never has there been so little to choose from, with sellers holding back from trying the market due to COVID-19, making a long-standing shortage of new construction that much worse.
Between a pandemic likely to cause another big cultural shift around single-family homes, and an inventory shortage unlikely to end any time soon, conditions are building for big run-ups in home prices.
We are still a long way from the giddy, greedy and fraudulent days of the real estate bubble circa 2005. But some of the ingredients that came together in such explosive fashion a decade or so ago are swirling around once again.
Boston ranked 20th on a list of the 25 real estate markets at greatest risk of being in a bubble, according to a recently published article by the Urban Institute.
