February 23, 2023
The Boston Business Journal recently published an article where Mark Williams, Master Lecturer of Finance discusses the prevalence of Boston home teardowns in Wellesley, Massachusetts.
There is a debate over whether these teardowns are making wealthy neighborhoods even wealthier, and driving middle- and low-income households out of the area, or whether they are making neighborhoods more desirable to homeowners. Boston itself, as well as residential areas outside the city, have been transformed by the teardowns. These homes have also been purchased by developers and investors with different motives than by families.
Williams adds that, “If they’re competing to get the next ranch, they’re paying more with the idea that they’re just going to flip it.”
As many LLCs invest in the market and flip these homes, the prices skyrocket, increasing the wealth in these neighborhoods and bringing affluent residents to the area.