Starter Homes Needed In Massachusetts

A panel consisting of academics, activists and business leaders is preparing a report that will call for the construction of 25,000 modestly priced houses in the Commonwealth over the next five years, the Boston Herald reported March 14, 2007. 

"The new homes, which would range in price from more than $250,000 to $400,000, are needed to fill in a crucial gap in the state's real estate market, executives and activists say. Groups involved include the Commonwealth Housing Task Force and the Massachusetts Association of Realtors."

Some in the group blame burdensome local building rules for the decline in "starter homes."

"To help spur construction of middle-market homes, the group is considering incentives. The carrots range from state money for towns that open up their doors to starter homes, to raising the income limits to allow more middle-class homebuyers to tap low-cost, government-backed mortgage financing, said David Begelfer, head of the local chapter of the National Association of Industrial and Office Properties. Builders would be required to keep homes below 1,700 square feet, clustering them five to seven an acre."

More single-family homes for less then $300K certainly would be a welcome site for a lot of first-time home buyers who do not want to buy a condo or townhouse.

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