Boston has earned the dubious honor of being ranked as the seventh most expensive city in the world when it comes to housing costs, as per a recent Bloomberg analysis. This designation isn’t without its reasons. Let’s delve into why Boston’s housing market is such a hot topic.
Pricing Skyrockets
Firstly, Boston’s housing and sales market is one of the priciest in the nation. A modest studio apartment in the city can set you back a staggering $400,000 or more. This exorbitant pricing has driven many potential buyers to opt for renting instead. The sale market is intensely competitive, featuring multiple bids and properties selling way above their asking prices. For most, it’s a more feasible option to rent in this cutthroat market.
Roommates to the Rescue
Boston is home to many tenants with deep pockets. In fact, most Bostonians live with roommates, a cost-sharing strategy that makes renting more affordable. When renting a 2-bedroom apartment for $2800-$3200, they often split the rent with one or two roommates, significantly reducing individual costs. Studies have shown that tenants in Boston spend about 30% of their income on rent. Thus, some are willing to shell out $2500 for a one-bedroom apartment, especially when the rent is being divided amongst roommates.
Student Housing Demand
With more than 30 universities, colleges, and community colleges in the city, Boston boasts a robust student population in need of housing. Escalating dormitory costs have prompted students to seek alternative accommodations, often with roommates. Moreover, many educational institutions are grappling with dorm space shortages, further increasing the demand for off-campus housing. Suffice to say, there’s a substantial market for off-campus housing, and students are a significant part of it.
Commuting Woes
Commuting in and out of Boston has become increasingly challenging in recent years. As the job market flourishes in Boston, more people are relocating to the city for new job opportunities. However, living within 10 miles of the city often translates to hour-long commutes due to traffic congestion. Fortunately, Boston boasts an efficient public transportation system, making car ownership feel unnecessary. Consequently, people are willing to pay slightly higher rents to reside closer to their workplaces and avoid the agonies of rush-hour traffic.
A Great Place to Call Home
Despite the steep rents, Boston remains a highly desirable city to live in. It’s steeped in history and ranks among the oldest cities in the United States. Boston also boasts numerous prestigious colleges and universities, resulting in a highly educated populace. The city is brimming with attractions, from Quincy Market and the Boston Seaport to Boston Common and Newbury Street. Plus, for beer aficionados, there’s Harpoon Brewery and Sam Adams Brewery, among others.
If you’re considering renting an apartment or buying a house in Boston, don’t hesitate to contact Boston Union Realty . We have been leading the industry in off-campus rentals and sales since 1992. We’re more than happy to assist you in navigating the ever-evolving Boston housing market. Contact us today!
