Note: Our market forecast covers Boston data and data from the surrounding area including Cambridge and Newton.
Boston is the capital of Massachusetts and the largest city in New England. It is home to nearly 693,000 people and also serves as a destination for more than 22 million tourists a year. The city was founded by the Puritans in 1630, although the region itself dates back thousands of years when Native Americans first lived there.
Affectionately known as Beantown – the nickname refers to the early settlers’ affinity for beans – Boston has reached many important milestones in US history, including the country’s first subway system (known as the T), the first public one School and the first public library. Today Boston is known in business and industry for its “eds and meds”. The city has some of the best hospitals and health facilities in the world, as well as dozens of world-class educational institutions.
Boston’s many neighborhoods offer a rich mix of real estate options, from stately brownstones in Beacon Hill to triplane in Dorchester to sleek new luxury condos in the Seaport District.
When considering investing in the Boston real estate market, also consider hiring the best movers in Boston and some the following factors.
The state of the market
Like many other major cities, the Boston real estate market has been hit hard by the pandemic. In the city center in particular, there was massive emigration of residents who left apartments empty in search of more space during the lockdown. The once bustling university campuses in and around the city were calm and subdued when students were sent home to graduate from a distance in March last year. As the vaccine continues to roll out, sites expect it to be full again in the fall, which is a good sign for investors in the student housing sector.
Here are some notable real estate trends:
- Housing is in short supply: Demand in Boston’s real estate scene is high and inventory levels are low. When houses come on the market, bidding wars usually ensue for those who can afford to get into the fight. This is especially daunting for first-time buyers who will likely have to wait for the market to cool down or expand their search further outside of town.
- The average price for houses is high: it is expensive to buy a house in Boston. The average home price in the country is $ 330,000 but in Boston it is $ 557,000. It will be difficult for investors to find bargains in such a hot real estate market, and homeowners attracted to low interest rates could stretch their budgets to the max. That said, if you already own property, now may be the time to start making money.
- The rental market is recovering: even with rents falling, the median rent in Boston is much higher than the general market. Boston is a huge university city, which meant there was a massive student exodus during the pandemic. Most students continued their studies either remotely or in a hybrid manner, depending on the campus. However, things are definitely looking good for the autumn semester of 2021, so that both campus and landlords are looking forward to welcoming the students back.
Indicators of the demand for residential property in Boston
All data and graphs are from Housing Tides by EnergyLogic.
Boston property prices have increased due to low supply and high demand, good news for current home owners. On the other hand, rents have fallen and vacancies have risen, which is bad news for rental investors. In cities near large campuses, however, the vacancies will be filled again when more students teach face-to-face as expected in the fall.
In recent years, the Boston area’s unemployment rate has been below the national average. That changed in 2020 due to the pandemic. As in many other metropolitan areas, the unemployment rate in Boston rose, and during much of the lockdown, the area’s unemployment rate was above the national average. The unemployment rate in Boston is currently 6.8%, an increase of 3.8% over the previous year. Hopefully this will improve as companies reopen and more people return to work.