Don’t Quote Me on This, but…
These are dangerous times to be a purveyor of good news. Not just because people now take tremendous glee in predictions of doom (see the French Toast Alert System), but because delivering good news on record has a way of coming back to bite you in the butt. For example:
“…we see no serious broader spillover to banks or thrift institutions from the problems in the subprime market…”
- Ben Bernanke, Federal Reserve Chairman, May 17, 2007.
That having been said, I want to reiterate my personal faith in housing markets in this area, despite any repercussions of Wall Street’s ill-advised flirtation with the mortgage industry. Take a look at the the state’s largest employers, and let’s focus specifically on the city of Cambridge.
The largest employer, MIT’s Laboratory of Nuclear Science, is supported largely by funding from the United States Department of Energy; I think it’s safe to say an icy credit market won’t make too big a dent in their bottom line. The next largest, the Research Laboratory of Science, should be similarly isolated from the market.
The next two largest employers are MIT (its academic portions) and Harvard; one is the foremost research institution in the world, and the other has been described as a 37 billion dollar hedge fund with tax-exempt status. While you could argue that higher rates on student loans and less private sector donation to academic research might hurt their bottom lines, I’d expect to see Angelo Mozilo panhandling in Harvard Square before the Crimson Entity starts cutting jobs.
If someone simply has to suffer from the recent downturn, I’d suggest smaller start-ups in some tech sectors might find themselves strapped for start-up capital. Then again, the state did just send them a billion-dollar check, and reports still find a shortage of appropriately well-trained workers, indicating continued growth.
At any rate, I wouldn’t expect too much shake-up in the value of homes in Cambridge in the near future. There are too many employers, too many services, and too much fun stuff to do.
131 Magazine St #3
Cambridge, MA 02139
3 beds, 2 baths
1,460 sq. ft.
$600,000
87 Bristol St #3B
Cambridge, MA 02141
1 bed, 1 bath
797 sq. ft.
$339,000
54 Lee St #3
Cambridge, MA 02139
3 beds, 1 bath
1,260 sq. ft.
$569,900
The Best Condos in Boston are on Marlborough Street
