Millennials are considered the largest age cohort in the nation, but many of them are opting to leave the Boston area. An estimated 7,000 millennials exited Boston in 2016 alone and housing costs are thought to be a major reason for this.
Over 10% of homeowners in the Cambridge and Boston areas have annual property tax bills of over $10,000. Meanwhile, the federal government seeks to cap property tax deductions over $10,000, as well as cut down the amount of mortgage interest homeowners can deduct annually. These deductions were a major draw of owning a property versus renting.
Experts believe the proposed federal tax changes to deductions associated with home ownership will have a negative impact—or at least majorly shake up—housing markets in areas such as Cambridge, Boston, and especially the smaller municipalities in that region. This makes older millennials, who are looking for a space of their own to settle down, wary of home ownership in this area. Instead, these young people are gravitating towards less expensive real estate markets.
– Allen A Garzone II, Garzone Real Estate, Inc, Boston Real Estate Agent