The Big Dig and its Effect on the Boston Real Estate Market

Awesome …. a moment of pride for Bostonians everywhere ??? 7-11-06, in one ton concrete wall tile, supported by 5 pieces of metal and epoxy, fell and crushed a car and the woman who finds it there. It turns out that the government's policy of awarding contracts to the lowest bidder is not necessarily the biggest policy. I heard a radio show describing the work done on the large excavation of lower quality than major construction projects in third world countries because of corruption and reduced costs (and at the expense of Security).

There is no doubt that Bostons "Big Dig" sparked both real estate speculation and real estate values ​​in the surrounding areas in the late 1990s and early 2000s.

According to an article in The New York Times on April 14, 2004, by Susan Diesenhouse, "Commercial Real Estate: The Ripples of Big Dig Reach Beyond Downtown Boston"

"With respect to the downtown area, the Big Dig has increased the value of our property by 10 to 15 percent," said Maryann Suydam, regional vice president of Equity, a Chicago-based company. Office Properties Trust, one of many projects under development in Egypt near the Rose-Kennedy Greenway. On the Russian wharf, the company plans to build a speculative office as part of a $ 300 million complex including a hotel with 330 rooms and 50 condominium apartments. lofts. & # 39; & # 39; & # 39; & # 39; This site has become more accessible, more beautiful and appropriate for new uses that will attract more businesses, residents and visitors, "she said.

Clearly, the greatest impact on property values ​​will occur around the downtown core, where the raised concrete roads that cross the city will be transformed into green spaces. However, the large excavation had a positive impact on property values ​​in other neighborhoods. For example, the extension of the Mass Turnpike (90) across South Boston to East Boston and to Logan Airport. I remember when they finally opened it in 2003, it was much faster to get to the airport. It has also made South Boston much more accessible to and from downtown Boston.

And South Boston certainly saw an increase in property values ​​at that time. According to MLS, the average selling prices for multi-family dwellings in South Boston (Southie) were as follows:

1998 – $ 234,809

2000 – $ 368,293

2002 – $ 445,000

2004 – $ 524,857

2005 – $ 635,793

You know, leaks in the tunnels come from a lousy job that I could care about … I can drive through leaks and puddles with a minimum of fear and stress . Now, keep in mind that avoiding concrete bits of a ton of concrete sounds is fun in a video game, but I love my car and I often break down in those games stupid. I think I will avoid the tunnels until something is done.

And I guess other people will have the same reaction as me. I wonder if buyers looking in a few different areas will start to exclude areas where they would be forced to play Russian roulette during their daily commute?

While the positive speculation surrounding the great excavation before its completion completely increases the value of the properties. Now that it appears that the grand excavation is a total failure, will some surrounding property values ​​be affected by the negative issues that are currently arising from one of the biggest failures in the history of government?

It seems to me a distinct possibility.