Best Locations For Boston Real Estate Investment
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A city such as Boston — known for its rich history, diverse population and beautiful housing — has to be a great opportunity for investment. Although the city ranks as one of the most expensive places to live, that figure speaks to the demand people have to live in the area. Of course, each neighborhood has its own story. Here is a list of the best places in Boston to invest in real estate.
Boston Real Estate Trends
Almost anywhere you look in Boston for investment in real estate, you’ll see growth. The Greater Boston Association of Realtors tracked a rise in home values of 10% for single-family homes and 6% for condos, with 2021 ending at $750,000 and $626,000 respectively. It is estimated that these figures will grow by an average of 7.5% for 2022. With rent averaging about $3,600 for a typical three-bedroom in Boston, investors have several ways to grow their investments over time.
The best areas in Boston to invest in real estate have a combination of factors, including:
- Median sale prices near or below the city’s average
- Steady growth in home values
- Moderate demand
- Growing rent prices
The potential value depends on the neighborhood and the loan programs investors get.
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Best Boston Neighborhoods for Real Estate Investment
Although Boston is known for its high prices, you can still find a great deal or a good long-term investment within the city boundaries. If you’re looking for the best neighborhoods in Boston to invest in real estate, start with these five.
Real Estate Loans in Boston
1. Charlestown
Charlestown doesn’t come at a bargain rate, but it may be well worth the effort. This area is one of Boston’s most expensive, but also one of the most in-demand for the rental market. Everyone, it seems, wants to get into Boston’s oldest neighborhood, settled in 1628 and still full of history on every corner.
At almost $900,000 for a median sale price in 2021, it’s the most expensive on this list. However, the rent, at $3,300 per month average, is also the highest. Investors looking to expand beyond small condo units might see Charlestown’s $750 average price per square foot as comparable with other neighborhoods, even those that are widely considered a great deal.
2. Dorchester
People from all over the city flock to Dorchester, Boston’s largest neighborhood. Home to about 25% of the population, Dorchester balances history and modernity with style. It’s been named it one of Boston’s most popular neighborhoods, with an average rent of about $3,000 per month.
At a median sale price of around $600,000 by December 2021, Dorchester represents a steady investment for investors who buy in 2022. With a near 400-year history, it’s surprising what investors can find in the neighborhood, from a stately Victorian single-family home to a small efficiency unit.
3. Chelsea
The neighborhood of Chelsea is practically defined by innovation. Although the area always seems to be moving forward, it still retains much of its original beauty and vibrant culture. Investors seeking an area with affordable real estate might struggle when they look in Boston, but Chelsea stands as a great choice.
The neighborhood’s homes have a median sale price of about $500,000, much lower than the city average. With an average rent of $2,400 per month, Chelsea presents a better return on investment for investors looking to buy and hold than many other parts of the city.
4. East Boston
Young professionals looking for a condo unit close to public transit have made East Boston a hot commodity for investors and tenants. With an average rent of about $2,900 per month, this neighborhood comes closer to matching the median sale price of $650,000 at the close of 2021. Although prices in this area went on a rollercoaster throughout 2021, they are starting to level out. As such, East Boston could be a great place for investors to buy and flip or buy and rent.
5. Hyde Park
As a neighborhood with moderate prices and a distinctly suburban feel, Hyde Park is certainly getting a lot of attention on the real estate scene. Tree-lined streets and open spaces drew buyers to this neighborhood at the beginning of the pandemic. The demand is just now beginning to cool a little, leaving a median sale price of about $585,000 by the end of 2021. With an average rental price of about $1,900, Hyde Park is on the low end of Boston’s average. However, for the resale market, experts estimate that demand for the uniqueness of Hyde Park will continue for buyers into 2022.
Boston’s neighborhoods offer great investment opportunities, particularly for investors looking to flip or rent. Contact Renovo to learn more about Boston real estate investment.
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