A reoccurring trend around Boston is for the younger population
to flock to the more vibrant, exciting lifestyle of the city. In a
recent article from The Boston Herald, we learn about the Hackney
family who decided to move from the suburbs to the city. Typically,
prospective buyers in todays real estate climate are targeting
open, airy, loft-like units. In addition, young individuals no
longer are immediately diving into the rental pool for years before
purchasing a home. All of this results from the drastically low
interest rates, the renewed confidence in the Boston real estate
market compared to other locations nationwide, and the rising of
rental fees.
This year, rental vacancy rates are expected to reach a 10-year
low reaching 3.5% with effective rates to be 5.8%. Our own Mary Kelleher of
Gibson Sothebys International Realty was also quoted in this
article! The younger populace is certainly coming to Boston, but
where are they exactly looking to buy instead of rent? In Marys
highly respected opinion, Up and coming areas such as the Leather
District and the Seaport area are getting more of a nod lately. She
went on to say, Buyers are connecting the dots, realizing you can
walk from the Seaport or South Boston to the work in the Financial
District and to restaurants. Kelleher also added: Money is cheap,
and many of these buyers are paying cash, rolling over equity from
the sale of their home in the burbs or obtaining a very small
mortgage. What is evident is that real estate purchases are seen as
a much safer route for investing money.
As we discussed in a
previous post real estate investments for the long-term is the
most popular and trusted method for making a solid return on
investment. Properties are flying off of the market in the city
because of the desire for people to have the amenities and
convenience that urban living provides.