Examining the Boston housing market in its many different aspects is one of the keys to learning more about when and where to make a housing purchase. If you are interested in buying or selling in the Boston housing market, here are a few of the latest real estate states for the city to help you with your decision-making process.
Boston Apartment Rents End the Year on an Upward Trajectory
According to a recent analysis of rental costs for one- and two-bedroom apartments in major cities across the United States, Boston ended as the sixth most expensive city in the United states to rent an apartment. As such, the Boston rental market ended 2017 at about the same place it ended 2016, with the median price for a one-bedroom unit increasing just 0.9 percent to $2,270 per month. Two-bedroom apartments saw a greater increase to a median price of $2,700 per month, representing a 3.8 percent increase when compared to the previous year. Both of these medians were essentially flat from November through December.
While these statistics do still indicate that Boston is one of the most expensive places to live, it is no longer among the top five most expensive apartment markets. Those ahead of Boston include San Francisco, New York, San Jose, Washington, D.C. and Los Angeles. In addition, rents in these markets increased far more dramatically than they did in Boston. Both Washington, D.C. and Los Angeles, for example, experienced double-digit percentage increases when comparing last year to this year.
Boston Housing Permits Reach Record Highs
Housing permits in Boston reached their highest on record since the 1990s in 2017 with a total of 5,349 permits issues for new houses, apartments and condos. This represents nearly a 17 percent increase when compared to the previous high mark set in 2015. Furthermore, nearly 20 percent of those permits included restrictions limiting the prices or rents that developers could charge, thereby keeping in line with the mission of the Mayor Walsh administration to alleviate the city’s high real estate costs. Whether or not the record high number of permits will create enough new construction to help bring down prices in the market, however, remains to be seen.
Examining Charlestown Home Prices
According to a recent real estate analysis, the average asking price for a market-rate home in Charlestown in the middle of January was $702 per square foot. The range among the neighborhoods within Charlestown is quite extensive, however, with prices spanning from $471 per square foot to $918 per square foot. At the high end of the spectrum is the Navy Yard, which is often more expensive than inland Charlestown.
Beacon Hill Condos Versus Houses
A recent analysis found that the average asking price for a house in Beacon Hill was $1,182 per square foot in the middle of January, with prices in the area ranging from $936 to $2,081 per square foot. Condos, on the other hand, were more expensive with an average of $1,331 per square foot and a range of $1,068 to $2,615 per square foot. As such, condo pricing appears to be outpacing housing prices, including the gorgeous townhouses that the neighborhood is famous for having. Experts do note, however, that new construction condos can skew the overall asking price to appear higher, which may at least partially account for the price differences between houses and condos in the neighborhoods.