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Colin A. Young
State House News Service The Federal Reserve's latest check-in on the local economy picked up early indications of the impact of the impending ballot question that could allow for rent control in cities and towns across Massachusetts. In its Beige Book compilation of insights from business and banking contacts around New England, the Fed said economic activity has been flat in the region lately, influenced by decreased tourism and weakened commercial real estate activity. The outlook for New England has "improved somewhat on a general decline in uncertainty," the report said. From real estate contacts, the Fed heard "multifamily investment activity pulled back a bit" recently and the report said one source attributed the softness to the rent control ballot initiative advancing in Massachusetts. Rent control proponents see their proposal (H 5008) as a needed fix for a rental market that's out of control and exacerbating the state's housing crisis, but opponents say putting tight controls on the market will stifle investment and future housing production. Massachusetts policymakers have for years been working on the state's housing problem, but the latest Beige Book suggests little has changed for weary house hunters. "In residential markets, sales of single-family homes and condominiums fell moderately from a year earlier, results attributed to the especially snowy January," the Beige Book says. It adds, "Inventories of single-family homes and condominiums increased moderately in northern New England states and fell sharply in Massachusetts." Since its January report, consumer spending in New England has been flat "with mixed results among contacts." Tourism and hospitality contacts reported modest declines in revenue, but retailers posted somewhat stronger results. "A grocery store chain experienced a boost in alcohol sales — temporarily bucking a longer-run downward trend — which it attributed to winter storms and the New England Patriots’ football playoff games," the central bank's report said. "A flower importer saw stable demand and revenues year-over-year for Valentine’s Day but noted decreased demand from wholesalers since Christmas, excluding Valentine’s Day."
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