As 2021 turns into 2022, everything old seems new again as COVID-19 cases rise, seemingly out of control and ready to upend the economy yet again.
But the past 12 months have also seen some major changes that will echo into the next 12 and beyond.
The most long-lasting could ultimately be the life science industry’s explosive growth, thanks to scientific breakthroughs and torrent of investment dollars with few other places to go. Firms big and small jumped into the real estate market left and right, with demands for 6 million square feet of space this year alone. These needs are making waves from Watertown to Worcester and are offering a timely lifebuoy for office landlords eyeing battered office demand and the 5.6 million square feet of office space under construction in Boston with concern.
On the home front, the miraculous COVID-19 vaccines were ultimately not a cure for inventory shortages. Juiced by low interest rates, single-family sale prices kept marching upwards, gaining 27.5 percent over pre-pandemic highs through Nov. 30 according to The Warren Group, publisher of this newspaper. Condominiums recovered their shine, too, as first-time buyers and move-up buyers priced out of the single-family scene turned there for relative bargains.
The institutions financing all this activity were rocked by their own earthquakes this year. Merger deals brought new players like Silicon Valley Bank into the local market, ended storied lenders’ runs and set the stage for intense competition between budding local giants. These combinations created opportunities for others, too, as some customers and staff felt motivated to jump ship to different institutions.
Next year will likely determine how four other big developments ultimately impact Massachusetts.
The see-saw saga of eviction moratoriums, lawsuits, evictions and emergency rental aid has opened eyes everywhere to the plights of renters and small landlords alike, and the state’s convoluted and completely inadequate safety net. With federal money being spent down, Gov. Charlie Baker and state legislators will need to craft a path forward – hopefully one that repairs the old system’s faults.
The other big earthquake from Beacon Hill this year was the Housing Choice law. As Steve Adams details in this week’s paper, developers are already seeing results and advocates expect great things.
Downhill from the State House at Boston City Hall, Boston Mayor Michelle Wu is winding up the first pitches of her historic term. With big dreams, a big appetite for big challenges and a mandate to match – she earned far more votes than popular former Mayor Marty Walsh ever mustered – Wu will clearly make some big changes next year.
Lastly, 2021 was also the year many banks and real estate firms finally started to take meaningful action on diversity within their workforces and among their partners and vendors. Senior executives were named to head up diversity and equity portfolios, developers started broadening the pool of architects and contractors they use and the pathbreaking firm RISE Together, which partly seeks out investment dollars from untapped communities of color, secured a perch in the development landscape. Next year will show which of these changes have momentum; we’ll be rooting for them all.
Letters to the editor of 350 words or less may be submitted via email at editorial@thewarrengroup.com with the subject line “Letter to the Editor,” or mailed to the offices of The Warren Group. Submission is not a guarantee of publication.
