However, developers are pushing back, arguing additional requirements will increase the cost to build at the same time that construction costs have gone through the roof and banks and other lenders are getting cold feet. One top development executive, noting he had just come back from a holiday party filled with real estate and businesspeople, indicated the Wu administration has a tough hill to climb selling the new requirements. “The talk in the room was how tone-deaf this administration is at a tough time in the market when they should be doing everything possible to stimulate development,” he said. “Hello, suburbs!”
And while city officials have worked overtime to downplay concerns the increase might lead to a drop in housing production, the experience of similar maneuvers in Cambridge and San Francisco suggests that is just what may happen.
Source: Boston Affordability Hikes Could Backfire, Other Cities Show – Banker & Tradesman
