boring post about supply and demand in the housing market

Recent articles in the Boston Globe highlighted what is apparently a robust housing market in Boston. One article dealt with the increase in median rents for one bedroom apartments in the city. Despite the recession and efforts by developers to build more units, the market has had steady year over year increases and it costs over $1500 a month to rent an apartment. Meanwhile, the condo market is also strong, both in the luxury sector and the "normal" sector.

So, we have a housing shortage in Boston, yes? I just did a quick check on prices in Quincy and the situation is comparable, which bolsters this point of view. But, what about the inventory of foreclosed homes and lower quality  housing in places like Dorchester, Chelsea and East Boston? Is the supply being temporarily constrained by that? Also, will the "boom" in multi-unit housing really amount to anything? Projects like that have a slow gestation period, and the overall number of units that can come on the market over then next few years is not that large.

Towers of Ilium will continue to monitor the situation and provide misleading, erroneous and contradictory commentary.