Boston is experiencing a luxury real estate boom, with thousands of new luxury residential and rental units in different stages of development. A decade from now, Boston’s skyline and population demographics will be fundamentally altered by decisions being made today.
This boom does have benefits, providing good jobs in the building trades and increasing property tax revenue for the city. But the boom is not helping address Boston’s acute affordable housing crisis. Bostonians today have a median household income of $58,500. Average Bostonians cannot afford the new luxury condos. They will, unfortunately, feel their impact. Boston’s luxury boom figures to push up land and housing costs and accelerate Boston’s already troubling disparities of income, wealth and opportunity.
Suffolk County, the jurisdiction where Boston resides, rates as the most unequal county in Massachusetts, our nation’s sixth most unequal state in terms of the gap between the wealthiest 1 percent and everyone else. And Boston’s racial wealth divide will only worsen if current trends continue. One marker of those trends: In 2015, not one single home mortgage loan was issued for African-American and Latino families in the Seaport District and the Fenway, two Boston neighborhoods with thousands of new luxury housing units.
City officials are failing to understand how such towers play a key role in the global hidden wealth infrastructure, a shadowy system that’s hiding wealth and masking ownership, all for the purpose of helping the holders of private fortunes avoid taxes and oversight of illicit activities. Many Boston luxury properties are functioning, in effect, as wealth storage lockers for global capital.