Among the 351 towns and cities in Massachusetts, Boston stands out due to its rich heritage and vibrant art and culture scene. And since it’s in the vicinity of two acclaimed Ivy League schools (Harvard University in Cambridge and Brown University in Providence, Rhode Island), Boston, MA makes its mark as one of the largest college towns in the country. All these considered, it’s not surprising that this city on the coast of the North Atlantic is highly sought-after for its real estate.
If you want to learn more about luxury investment properties in Boston and why investing in them is a smart idea, continue reading.
BOSTON HAS A STRONG HOUSING DEMAND
As an epicenter of excellent schools and a booming tech industry, it’s not surprising that people are migrating to Boston and seeking out a place to live here. But given the lack of housing stock and the ever-increasing demand, prices of homes for sale in the city have jumped so high.
In addition, most new construction these days have price tags at luxury-home levels, primarily due to the outrageously high cost of construction materials and the scarcity of construction labor
With the scarce supply of homes and some home buyers being boxed out of the competition for whatever available stock there is due to pricing that’s way above their budget, the next available option is to rent. This is why there is more than twice the number of renters than there are homeowners in Boston.
BOSTON HAS A FAST-PACED RENTAL MARKET
Statistics from NeighborhoodScout.com show that renters occupy 67.7% of the residences here while owners constitute 32.3% of Boston’s housing profile. Meanwhile, 9.5% of homes in The Hub are vacant. Boston tenants have been paying an average of $3,482 for a studio and $4,045 for a one-bedroom apartment (July 2023 figures). Note that these prices have gone up since the previous year, with studios making the biggest leap of more than 10% from their 2022 rental cost.
Taking all these into consideration, making a bid to invest in a luxury rental in Boston opens you up to the opportunity of making both short-term and long-term gains.
BOSTON HAS A LOW UNEMPLOYMENT RATE
With the nationwide belt-tightening that’s happening as a result of the soaring inflation rate, many states are being more austere with their economic measures. The mass layoffs in Silicon Valley are one fine example of this austerity. However, Boston seems to be bucking the trend, registering a 2.3% unemployment rate in May. While only slightly lower than the national average of 3.6%, this is still an indication of optimism that the overall economic health of Boston and the rest of the state is still in the green.
Job security has an impact on real estate as this indicates the strength of Boston residents’ spending power. Even with the economic downturn, they could still afford to keep renting as there’s little to worry about regarding layoffs and retrenchments. A good number of them would also be looking for top-tier amenities and features that could only be found in luxury real estate. For the hefty investment, you’ll be assured of hefty returns.
When it comes to searching for the finest luxury homes in Boston and beyond to invest in, I, Seydyss Barreto, am the Realtor you could trust. Discover the best investment properties in Boston by giving me a call at 978.590.8918 or sending an email here.