I was glad to read that Daniel O’Connell, today’s Boston Globe hotseat guest, will be overseeing both the economic and housing development posts in the Patrick administration. Interesting to see a democrat condensing government instead of expanding it.

Efficiency aside, Daniel is a veteran of the real estate industry, leaving his post at Meredith & Grew to tackle the constant stream of college educated 20 and 30 somethings leaving our great state for a new hometown with a lower cost of living.

Here’s what he had to say about the situation:

“Globe: What is the single biggest economic challenge facing the state?

O’Connell: The biggest issue I see is the retention of our best and brightest. Keeping people in the state who are graduating from our colleges and showing them a quality of life here in the Commonwealth that makes it attractive for them to stay here and raise their families here.”

I hope he finds a way to succeed. December at my firm is spent gearing up for the college rental season that begins with the New Year. We spend a good portion of our time calling on previous clients to see if they are re-upping on their leases. A good portion of these men and women are seniors and if they say no our next question is to ask what their plans are.

It’s scary from an economic standpoint to hear the responses. “I’m moving to Chicago”, “New York”, and lately “Miami” are what I’ve heard, to pursue careers in industries we have right here. Boston has become branded as a great place to go to school, but to expensive to live in once graduation rolls around.

Economics 101 teaches us the basic principle of supply and demand. The low stock of affordable housing (supply) and the high demand for it will only increase prices. The way to combat this is to build more. Easier said then done in this town! The local communities have way too much clout when it comes to housing development in this city.

If I were O’Connell I would work with the legislature to pass laws that weaken these community groups. Not quite sure what the carrot would be but the stick would be less power when it comes to zoning and building permits.

Until then we will not see a spike in supply or a decrease in housing prices, and the Mass Pike will be filled with GenX’s strapped with college debt saying “anywhere but Boston!”

Filed under: Boston Real Estate Blogging