The city of Boston has experienced record housing market growth over the past decade. Median sale prices have soared on account of a tight supply of for-sale properties and growing demand. In 2011, the median sale price for a single-family home in Boston was $375,000. Just 11 years later, that figure has more than doubled to $812,000. With such rapid price growth, you may be wondering if Boston is still a good place to purchase a home that will appreciate in value long-term?
Boston is still a good place to buy real estate because the city’s long-term economic outlook is positive. Despite the current economic slump we’re experiencing, there are many reasons to believe that they are only temporary and Boston’s housing market will recover. Here are a few reasons why:
1. The supply problem is not going away
One of the main reasons Boston’s median price has risen so much is because of the limited supply of for sale inventory in the metro region. Boston is a very old city and has been undergoing development for the better part of 500 years. There just isn’t enough developable land to meet rising demand for housing. The city has been scrambling to green light large multi-unit condo developments to combat soaring real estate prices, but we’re still falling short. Boston’s total supply of for sale properties has steadily declined over the past 5 years despite the city’s efforts to create new inventory. That problem is not likely to be resolved anytime soon.
2. Long-Term Housing Demand Looks Positive
In spite of the recession either in front of us or already here, Boston is still adding jobs at a higher margin than the national average. According to the Bureau of Labor & Statistics, Boston saw a 6.4% increase in professional service jobs compared to a 5.7% gain nationally. That’s no surprise to those who know that Boston has ranked #3 on the list of cities attracting the most VC funding over the past 5 years. This trend is unlikely to change, as Boston…