Boston is one of the oldest and most expensive multi-family markets in the United States, and multi-family real estate on a per-unit or per square footage basis is at an all-time high. Still, investors are steadily expanding their portfolios in Greater Boston Suburbs, and are focusing on multi-family properties in particular.
Why are they doing that? Because the real estate market value in Greater Boston holds its value — and mathematically speaking, when you factor in the high rents, it’s a great city to invest in.
Boston is also an excellent city for house hackers looking to save money on rent — and for investors looking to grow their portfolio. There are many sub-markets in this area, and — in turn — plenty of opportunities for everyone, regardless of your strategy.
Property value trends in Boston
Overall, the property values in Boston tend to be consistent — which makes this market relatively resilient during downturns. For example, the median property in Boston was valued at $937,083 as of September 2021, as noted in the chart above. That value is essentially flat when compared to the property values one year prior.
The Boston housing market also bounced back very quickly following the initial dip from the pandemic, and a similar trend occurred with the housing market crash in 2008. Per the historical data, the 2008 property prices decreased in Boston — just as they did in markets across the nation — but the drop was not nearly as extreme as it was in the rest of the country. And, Boston recovered much faster than other markets, too.
That consistency in value from year to year is due to the greater Boston market being very mature, with prices that are pretty predictable. In turn, that makes it a great area for fix and flips and buy and hold. As with investments in many of the older cities, the money is made on the purchase of the property — not on the sale.
That said, if you want to make money in BeanTown, you need to buy…