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.