WorcesterMulti in the News

Back in the news.

Please see this article by Sam Turken of WGBH.

There is a link to an audio file as well.

https://drive.google.com/file/...

I may have mentioned in a prior Blog that there are times after seeing Multis that I cry for Worcester.  This article makes you want to cry.

People who have lived in Worcester for their entire lives are being displaced.

Who is to blame?  The article seems to think that it is landlords(greedy?) who are pushing the envelope on rents.

I say it is the FEDERAL RESERVE BANK who is to blame.

Why?

They reduced interest rates to such a low level so that anyone who even considered being a landlord was buying Multis in Worcester and driving up prices.  When prices went up, rents went up.

Worcester was a largely stable rental market, but when interest rates dropped below 4% for a 30 yr mtg in 2017 prices for multis began to rise.  In 2017 the median price for all multis under $600k was $260k, by 2020 it was up to $375k, and now it is probably over $450k

When prices for multis rise, so do rents.

Hopefully the increase in interest rates will reduce the price of Multis to the level that rents will be able to drop.