Is Boston real estate still a good investment today in the face of runaway inflation, ridiculous energy prices and high interest rates? Should you continue to sit on the sidelines and wait, or is it time to look elsewhere? Have prices reached the top, and are they about to go down? This article seeks to dig into the fundamentals of whether or not now is the time to invest in Boston Real Estate.
With over four million people residing in the greater Boston metropolitan area — roughly 80% of the state’s population — Boston real estate has had a long storied history of increasing values and rising rents. And while its steady appreciation and high demand aren’t going away anytime soon, recent economic events have people wondering, is Boston real estate still a good investment? What are the factors that could make it change? Historically, property prices nearly always come down in the face of higher interest rates. It’s a simple math equation that borrowing costs go up as interest rates rise. Your higher monthly payments eat into the size and quality of the home that you can buy. Yet the market is still holding on to high prices. Interest rates went up so fast that inventory levels rapidly decreased which has momentarily caused prices to continue to rise even in the face of these higher rates.
Why is this happening?
Could it be that we are simply not developing enough properties to meet demand and that people do not want to give up those 3 percent rates they locked in years ago?
We have a lot to unpack here on why Boston still could be a great real estate investment.
First things first, always keep an eye on the unemployment rate in the Greater Boston Area. Right now there is still close to record low unemployment, hovering around 3% compared to a long term average of 5.32%. Even when someone loses their job or gets fired, they are quickly hired elsewhere. People rarely leave the Greater Boston area unless they can’t find work. However, our incredibly…