The Year Ahead In Real Estate – National And Market Specific Insights Series: New England

When there isn’t a structural imbalance, real estate follows wealth and employment. If anything, the New England market is imbalanced due to lack of supply.”  Lack of supply has eased for sure, but it remains a national issue, both cyclically (because people are locked in by low mortgage rates) and structurally, (as the Millennial demographic increases home demand into an underbuilt environment). 

Confidence has a role to play as well.  If the environment inspires confidence, the real estate market will follow.  As noted before, tax policy influences movement among states, with New Hampshire as a beneficiary of the Massachusetts millionaires’ tax.  That said, want-to-dominates have-to-have at the high end, and Vermont and Maine continue to draw for natural beauty and lifestyle.