01/05/2021
Something unexpected has happened in the Massachusetts housing market during the pandemic: Demand for homes has actually gone up, along with prices.
鈥淚t is counterintuitive because we鈥檙e in an economic crisis and housing prices normally wouldn鈥檛 be going up,鈥� says Research Prof. David Turcotte, an expert in sustainable housing and community economic development. 鈥淚t鈥檚 propelled by two things: People wanting to get out of the city and into the suburbs, and low interest rates.鈥�
Turcotte sees trouble brewing on several housing fronts in 2021.
鈥淚鈥檓 concerned we could be heading into a housing bubble,鈥� he says. 鈥淎nd everyone is concerned there is going to be a wave of evictions. We already have a homelessness problem, and I think that crisis is going to be exacerbated unless there鈥檚 funding put in place that can help people with their living costs while they鈥檙e unemployed.鈥�
Turcotte also worries that the economic recovery won鈥檛 be equitable.
鈥淲e know that the impact of the pandemic, both economically and health-wise, has been greater on minority communities,鈥� he says. 鈥淚 think evictions and foreclosures will have a disproportionate impact on those communities, as well. It鈥檚 going to be difficult for those communities to climb out of this.鈥�
Overall, 鈥渢he economy is in better shape now than some people would have anticipated,鈥� says Turcotte, who is hopeful it can fully rebound by the end of 2021 now that vaccines are being delivered.
鈥淎 lot depends on government policy and leadership,鈥� he says. 鈥淲e need to get some more COVID legislation out there, more stimulus in the economy. But it should be targeted to those who really need it: people in food lines who can鈥檛 pay rent.鈥�
