Why Boston Needs Minority Contractors

There are three main problems facing the young potential homeowner in Boston first, Scarce Housing: According to WBUR and New York University’s Furman Center which studies housing: 60% of Bostonians are renters. From 2006 to 2014, rental population grew by about 22.8 percent but the number of rental units grew by only 15 percent. Boston's vacancy rate dropped to 3.5 percent in 2013 — the third lowest rate of major American cities…millenials sometimes choose to rent rather than to own. Also, with college debt they can't afford to buy a house or condo.

Fewer Homes: The Mass. Homebuilders Association says that despite a large number of apartments and condos being built in Greater Boston, overall new construction is below historical averages. Only half of the number single family homes are being built compared to a decade ago. The problem: land shortage. Scarce housing,Land shortage and high rents means we need a new paradigm to follow for future Bostonians.

The study also found that while rents are rising, wage growth isn’t keeping up and many people are paying unaffordable rents — especially low-income renters who the report found to be “severely rent-burdened” (meaning they spend 50 percent or more of their income on rent.)The study also looked at housing affordability and found the median household income for the black community grew by 15 percent from 2006 ($34,934) to 2013 ($40,065), according to the study The ACS 1-year survey shows the per capita income for Boston was $40,593 in 2014.The Census ACS 1-year survey reports that the median household income for the Boston-Cambridge-Quincy Massachusetts metro area which is predominantly white was was $75,667 in 2014.

The difference is home ownership not wages. Home ownership has multiple advantages over renting and it is extremely affordable especially in this economy through HUD programs that take 50% off the listing prices to induce buying also the tiny house movement has changed the way many people feel about what makes a home.because of the lack of land as a resource in the Boston community the perfect response is refurbishing homes and retrofitting them to be cost efficient enrgy wise as in the case of net zero design innovations and the use of 21st century materials that are low cost but superior to traditional materials.

Materials such as hempcrete offer superior insulation and natural mold resistance and fireproofing at a competitive price to traditional materials. Minority contractors who have traditionally been marginalized when it comes to multi million dollar build projects are the perfectchoice for new home- purchasers who want to upgrade their standards of living and pay less doing it.Homeownership can be a very savvy financial move – but only if people buy homes they can actually afford. In 2015, this idea of sticking to a home you can afford to gradually build wealth is a “rule” that just happens to be new and old at the same time.Your equity in your home is the amount of money you can sell it for minus what you still owe on it. Every month you make a mortgage payment, and every month a portion of what you pay reduces the amount you owe. The key is getting a low mortgage so you canbuild the value of your home through savvy building like the adding of solar panels that increases the value of the average home by 20 thousand dollars even if your investment was only 10 thousand! hiring artisans to do tiling in your baths and kitchens instead of painting can increase the value of your home by ten to 15 thousand on a 2 thousand dollar investment. With tiling it is the artistry thast matters not the type of tile. The tax code allows homeowners to deduct the mortgage interest from their tax obligations. For many people this is a huge deduction, since interest payments can be the largest component of your mortgage payment in the early years of owning a home. This includes repais and upgrades like LED lighting and moreover the first year you buy your home, you are able to claim the points (also called origination fees) on your loan, no matter whether they are paid by you or the seller. And because origination fees of 1 percent or more are common, the savings are considerable.Real estate property taxes paid on your primary residence and a vacation home are fully deductible for income tax purposes.In the first few years, it may be cheaper to rent. But over time, as the interest portion of your mortgage payment decreases, the interest that you pay will eventually be lower than the rent you would have been paying. But more importantly, you are not throwing away all that money on rent. You gotta live someplace, so instead of paying off your landlord’s home or building, pay off your own!