HOUSING DEMAND IS ALWAYS LINKED TO POPULATION GROWTH
Housing prices rose for several years and were followed by rent increases as housing demand grew from those who couldn’t afford to buy.
Residential real estate investors have nothing to fear for one simple reason – It is far more likely that our population growth rate will rise rather fall from the after-effects of the coronavirus.
As a result of our location, abundant health resources, vibrant culture and positive outlook, downtown Boston is seen as a safe haven during times of strife or recession. The Spanish flu experience shows us that our population growth rates are likely to rise rather than fall once the panic is over and borders are opened again.
Boston Real Estate and the Bottom Line
There are other significant similarities to the Spanish flu outbreak and the current pandemic as well, such as falling interest rates. In 1919 Investors abandoned savings and flocked to the safe haven of property. There is every indication that they will do the same again.
Taken together, all these indicators suggest that property prices will rise in our downtown Boston once the coronavirus has become old news.