Luxury markets in the top investment cities across the country are either in a pricing correction or expected to cool significantly in 2019.
Boston is very different and is among the best markets in the country to outperform through the end of the cycle and beyond.
Some key factors include the cost of building one of the highest in the nation which will create a deficiency in supply and resulting in Boston’s home and rental values to steadily increase.
Boston’s population is growing. The U.S. Census data shows the city’s population grew at nearly 11% between 2010 and 2017. To keep up with the ballooning population, Boston will have to produce 69,000 new housing units by 2030 in its urban core alone. Boston’s median household income has increased steadily over the last several years, and its unemployment remains lower than every larger U.S. city.
The result of this simultaneous population and income growth dynamic bodes well for Boston as the average condominium pricing has grown at about 8% year over year.
Boston’s economy continues to mature and build on unprecedented growth, generating strong consumer confidence. Real estate may be facing a national cooling-off period, but Boston’s hearty market is set to weather the cold.