EDITORIAL: Housing market plays catch-up with economy

If you’re one of the many Massachusetts residents scrambling to buy your first house or condo, the state’s latest residential real estate price and inventory figures continue a discouraging trend.

That’s because according to the Warren Group, which tracks that activity, the median sale prices for single-family homes and condominiums hit all-time highs in October, at the same time the number of properties on the market decreased.

The number of single-family homes sold in October — 5,175 — represented almost a 1 percent decline over October 2017. Condo sales (1,920) tumbled in October, down 7.6 percent from the same time last year.

However, the median sale prices for homes ($385,000) and condos ($365,000) have increased 3.9 and 7.6 percent respectively year to date.

Now some economists would say this data indicates evidence of a strong economy, implied by individuals’ continued willingness to pay increasingly higher prices.

And the state’s 3.5 percent unemployment rate suggests a healthy jobs market where the supply of workers — like real estate — is likewise in demand.

But these numbers only tell half of the story. While many communities see continued home price increases, others have experienced continued depressed values.

That also holds true for the portion of labor force that owns a home, and those still trying to break into the tight housing market, a result of which is equally high rents.

At statistically full employment, this state’s economy can’t afford to lose skilled workers. But soaring home prices will lead to that exodus unless government and private industry find a way to produce more market-rate and affordable housing.

The commonwealth’s pricey real estate discourages workers from relocating to Massachusetts and forces those already here to seek less expensive areas to live and work.

That’s backed up by The Boston Foundation. Its most recent annual Greater Boston Housing Report Card showed that Boston accounted for 41 percent of all new housing permits issued in 2017.

That obviously means the rest of the state, especially the suburbs, aren’t doing enough to provide affordable housing in their communities.

This keeps the number of available housing units low and prices high for both first-time home buyers and empty-nesters seeking to downsize.

Lawmakers and Gov. Charlie Baker both recognize the need for more affordable housing stock, as do many of the state’s business leaders.

The problem continues to be the reluctance of both the Legislature and developers to change the status quo.

The governor presented legislation that would allow municipal governments to change their zoning rules with a simple majority vote, rather than the existing two-thirds requirement.

That would facilitate Baker’s plan to build 135,000 new units of housing in the state by giving cities and towns more control over zoning.

Enough lawmakers obviously felt sufficient pressure from the wealthy communities they represent to stall and ultimately table Baker’s bid in the last legislative session.

And while builders remain eager to undertake developments in pricey areas like Boston’s Seaport District, they’re reluctant to wade in the weeds that come with the red tape of building affordable housing in communities fighting it at every turn.

Federal, state, and local government must find a way to lure housing and jobs to where they’re most needed. That’s the objective of Lowell’s Hamilton Canal District. But that must be replicated in Gateway Cities across the state — Fitchburg, New Bedford, Taunton, Pittsfield, and Holyoke — for the benefits of the state’s robust economy to be shared equitably.