Boston condos for sale: Investors versus first-time home buyers

The National Association of REALTORS® has organized a report entitled The Investment  Home Buyers Report. The report, is based on a survey of those who bought residential property including primary and investment homes.

National Trends In 2019.

In 2018 we saw a substantial increase in competition between property investors and first-time home-buyers. According to the report, investors are beginning to search for smaller more affordable properties in urban areas, often outbidding first-time home buyers. How?

Cash & Financing Terms.

Boston condo investors normally have a higher income with more disposable cash flow. This means they are more willing to buy a Boston condo for sale with cash instead of applying for a mortgage.

Additionally, when investors do obtain a mortgage, they are able to put down a higher down payment. This results in their loan more likely to get approved. In general, investors have a lower debt-to-income ratio as well as higher credit scores. Most first-time home-buyers can’t compete with those qualifications.

More Investors = More Competition For Entry Level Boston Condos For Sale.

Most investors buy Boston condos for sale to use as rental properties.This makes it more challenging for first-time home-buyers who may be outbid for lower priced condos.

Continuing Challenges For First-Time Home buyers

As Millennial’s grow older and the desire to settle down, the demand for rental properties is slated to remain high. However, this creates another conundrum – a lack of supply. With more and more investors and first-time buyers alike entering the low-end of the market, which creates more competition. Unfortunately, we’re not seeing the supply of available homes increasing. Looking into 2019, these trends are likely to remain the same.


In 2019, the supply of Boston condos for sale may increase, but the new Boston condos for sale being built are not geared for first-time home-buyers. With cost of land acquisition so high, most have a price tag of $1M and above.

Author Profile

John Ford
John Ford

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs

In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.


For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.


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John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.

John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114



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