Greater Boston faces a slowdown in new construction

[Shortie]

A significant slowdown in new construction has impacted contractors, those seeking building permits and developers in Greater Boston. There has been a dramatic drop in the number of permits issued for housing units within the area with a 43% decrease in September alone compared to September 2022, as reported by The Boston Global. Global financial market instability, increased construction costs and high-interest rates are thought to have been what contributed to the decline.

The situation is even more pronounced with a 46% decrease in the new housing units in the first nine months of the year in Boston. The slowdown is causing projects that have permits but have not started the work yet to have a huge backlog which is now threatening the efforts to address the house shortage in the region.

Governor Maura Healey and Mayor Michelle Wu of Boston are currently considering incentives to help encourage development, with financial support and tax breaks being considered. Developers, however, are cautious with some going as far as to pause their projects due to new requirements for affordable housing and energy efficiency as well as financial risks.

This trend is not just local but also national with a decrease of non-residential and residential building starts across the United States.

You can find more information by reading the following article in the The Boston Globe

 

[Nomad]

The slowdown in new construction in Greater Boston is not only affecting contractors, permit seekers, and developers but is also slowing down economic activities. A decrease in permit issuance and a drop in new housing units indicate a lot of things such as recession, inflation, and high interest rates. Interestingly, this is not just an issue in Boston but the entire United States as well as an international issue.