The year 2019 is right around the corner and many housing markets are expected to continue their successful real estate market trends. Boston, Massachusetts is among these markets. According to a recent report by the PWC, Beantown is projected to be the best gateway market in 2019. What are some other Boston housing market predictions for 2019? What neighborhoods will make for the best places to invest in Boston real estate? Read more to find out!
Boston Housing Market Forecast
Every Boston real estate investor knows that the average Boston investment property is a relatively expensive one. This trend is not expected to change, unfortunately. According to Realtor.com’s housing market forecast, property prices are projected to increase by 4.6% in Boston, which is 2.4% more than the estimated national increase. The good news for sellers, according to the forecast, is that Boston investment property sales are expected to increase by 3.6% versus the national decrease of 2%.
Overall, the Boston housing market is arguably the best city to buy real estate in the New England region. The aforementioned PWC report ranks Boston as number 7 in their list of the top markets to watch in 2019. This is largely due to the city’s economy. Boston is the only city in New England expected to have an employment growth rate that is comparable to the national level. Boston is also one of the best US cities when it comes to job growth and stability. The 6th largest in the US and one of the largest in the world, Boston’s strong economy is expected to bolster in 2019.
Science and technological industries, which are a staple of Boston’s economy, are projected to grow 73 percent faster than the broader job market through 2026, according to the report. This will definitely expand the city’s educated workforce, which ultimately strengthens the Boston real estate market.
Related: Location, Location, Location: Is Location Really All in Real Estate Investing?
The Boston housing market is also expected to be ripe with investor demand. More specifically, Boston is projected to have the highest investor demand in 2019, according to the report. Real estate market trends such as this one make sense given that about 68% of Boston residents reside in a rental property.
Best Neighborhoods in Boston Housing Market 2019
The previously-mentioned features paint the Boston housing market 2019 as one of the best to invest in the US. But where exactly in the Boston real estate market should you invest? The best way to figure out is to use Mashvisor’s Heatmap Analysis! The Heatmap Analysis Tool allows real estate investors to search for investment properties anywhere based on their selected criteria. To learn more about Mashvisor’s Heatmap Analysis, click here!
According to Mashvisor, the best neighborhoods in Boston are Mattapan, Roslindale, West End, Roxbury, and Charlestown.
Mattapan
- Median Property Price: $394,633
- Price Per Square Foot: $274
Traditional
- Rental Income: $2,063
- Cap Rate / Cash on Cash Return: 2%
The best neighborhood in the Boston housing market is Mattapan. With one of the most inexpensive median property prices in the city and the lowest on this list, Mattapan is a must-see for a Boston real estate investor. Even with affordable property prices, the historic neighborhood boasts high rental income and return on investment averages.
Related: The Most Affordable Neighborhoods to Buy Property in the Most Expensive Cities
Roslindale
- Median Property Price: $534,750
- Price Per Square Foot: $432
Traditional
- Rental Income: $2,296
- Cap Rate / Cash on Cash Return: 2%
A well-known residential neighborhood, Roslindale is also one of the top areas in the Boston housing market. Its median property prices, despite being more than Mattapan’s, are still lower than the city’s median of about $850,000. This diverse neighborhood has been growing in population in recent years, resulting in no shortage of possible tenants.
West End
- Median Property Price: $659,333
- Price Per Square Foot: $693
Traditional
- Rental Income: $2,527
- Cap Rate / Cash on Cash Return: 1%
West End is ranked as the best neighborhood to live in the Boston area and one of the best in Massachusetts as a whole, according to Niche.com. With such a status, it won’t be hard to convince many to invest in Boston real estate in this area. While it is the most expensive neighborhood on this list, it is still lower than the Boston median property price. Its average rental income is also one of the highest in all of Boston.
Roxbury
- Median Property Price: $499,900
- Price Per Square Foot: $333
Traditional
- Rental Income: $2,332
- Cap Rate / Cash on Cash Return: 1%
Another one of the best neighborhoods to invest in the Boston housing market is Roxbury. In recent years, Roxbury has become a cultural hub in Boston. It is home to many art centers and museums. With the second lowest median property price on this list and one of the highest rental income averages in the city, Roxbury is a popular residential and investment destination.
Charlestown
- Median Property Price: $650,667
- Price Per Square Foot: $673
Traditional
- Rental Income: $2,575
- Cap Rate / Cash on Cash Return: 1%
The last neighborhood in the Boston housing market on our list is also the city’s oldest. Charlestown is also one of the best residential neighborhoods in Boston and in the state of Massachusetts. Home to much of the city’s history, Charlestown is also the most profitable neighborhood in Boston, in terms of rental income averages. Overall, Charlestown should definitely be a consideration for those wanting to invest in Boston real estate.
All in all, Boston is potentially the best city to buy real estate in New England and one of the best in the entire US. Despite its high property prices, relatively affordable and profitable neighborhoods persist. With a strong economy and high investor demand, Boston is among the markets to keep an eye for in 2019. Want to start searching for the best investment properties in the Boston housing market? Then click here to start your 14-day free trial with Mashvisor!
Related: US Housing Market Predictions: What’s to Come in 2019