Median rents are going up across the Boston real estate market. The population is growing, and Boston real estate market values are all over the place. For an explanation, some would look to our neighbors in New York
The Big Apple is by far the biggest exporter of residents to Boston. More than a third of New Yorker’s are looking for homes outside the city — and their leading potential destination is Boston, according to a study by Redfin.
The study looked at more than 1 million Redfin users’ search history across 75 metro areas. The analysis by Redfin, a real estate brokerage company, found that 34 percent of New York City residents were looking at homes in a different area, and that Boston was the most-searched city. (The New York Post, in its coverage of the survey, referred to Boston as “our city’s archrival.”
All this migration to Boston has significant impacts on the Beacon Hill apartment market, and the cost of Boston condos for sale We need more Boston real estate options, especially in the apartment rental market. But is it fair to say that New Yorker’s are taking over Boston in 2019?
Let’s look at the issues of rent, population and real estate values one at a time.
Impact of Beacon Hill Apartment Rents
Yes, Beacon Hill apartments rents are climbing again in 2019. Rental prices had slowed after the September rush, but have climbed in 2019
It would be easy to pin the blame for high rents on those Yankee fans, given the influx of people from that state and the facts that rents are generally higher for Beacon Hill apartments, meaning that new residents from that state are prepared to pay more.
Taking a closer look, however, we find that demand for rentals surged nationwide in 2019. Rents went up by 3% across the country, so it seems that Beacon Hill apartments is very much following the national average.
Here’s a better explanation of why rents are going up everywhere: More people are renting versus buying a home. A survey from Freddie Mac said that a record 82% of renters found renting to be more affordable than owning a home in 2019. That’s because saving up for the down payment can be difficult when you’re renting. (Fortunately, Boston has great programs for first-time homebuyers —) Also unfortunately, they are not paying attention to conclusive research that home ownership is always a better long term investment than renting, typically only taking 2-4 years to be in a financially better position (as of this article 2 years and 11 months).
In short, it’s not New Yorker’s causing Beacon Hill apartment rents to go up, but a general demand for rental housing at a time when buying a new Boston condos for sale is out of reach or just not desirable for many renters.
Bottom Line
No one moves to Boston more than New Yorker’s. Bottom line, we are neighbors. It is better to avoid blaming New Yorker’s for Beacon Hill apartment high rents and try to get along.
Boston Estate Market Advisers
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