Top Locations What It’s Like Investing In Cambridge Real Estate by Mays Kuhail January 25, 2017January 31, 2019 by Mays Kuhail January 25, 2017January 31, 2019 We’ve talked about Boston real estate, but what about its neighboring city – Cambridge? From quiet streets to trendy neighborhoods, the City of Squares attracts artists, thinkers, students, professionals, and businessmen into one place. And where else would they all reside besides Cambridge real estate? Related: Best Places to Invest in Real Estate: College Towns Cambridge Real Estate Overview Cambridge recorded the highest home prices in the state of Massachusetts in 2016. High demand, in addition to a shortage of properties both have Cambridge real estate prices at a peak. And while there’s a shortage in supply, home sales have increased by 19% last year alone. The spike in Cambridge real estate prices can be attributed to the city’s strong and growing economy, and the influx of university students. Cambridge’s pharmaceutical, tech, and research (in Harvard and MIT specifically) industries have all been expanding and driving more highly-skilled and highly-paid workers, as well as students and professors into the city. Cambridge real estate is certainly one of the nation’s most difficult and challenging markets. In the seller’s market, a Cambridge home spends on average 12.64 days on the market. While towns like Melrose or Waltham, just 6 miles and 7 miles away respectively have an overage of 50 days for their property on the market. But, it is worth it? Absolutely! Below, you’ll find Mashvisor data on top neighborhoods in Cambridge real estate and realize the great investment opportunity in the city. Airbnb Cambridge It’s no surprise that Airbnb Cambridge is such a success. The city’s international appeal makes it among the top Airbnb markets in the area, and a great investment opportunity. An inflow of tourists visit the city for its architecture, well known ivy-league universities, its art and culture scene, and its historical significance. Whatever’s on a tourist’s mind, Cambridge can flaunt it! In regards to Airbnb Cambridge, the city has decided to create adaptive legislation to allow hosts and residents to rent their properties on the site without endangering life standards or the city’s culture for the locals. The city does not object to owner operate and owner operated flats. They are however, worried about commercial investors whose sole purpose of buying a property is to rent it out on Airbnb (and who make up 14% of total current Airbnb listings). The concern arises from the city’s critical property inventory shortage. City officials, as well as locals, believe commercial Airbnb investors further endanger Cambridge’s housing inventory stock. The city is at the moment trying to figure out the legislative and the taxation measures it should take in regards to Airbnb Cambridge. Specifically considering that a large number of hosts in Cambridge are illegal. 26% of Airbnb listings in the city fall into zones that are illegal to operate tourist houses in without occupancy permits. Still, the city of Cambridge believes Airbnb can maintain and preserve the city’s diversity and encourage residents to stay in the city. What the city’s trying to do is find a way to impose legislations that will make hosts, renters, as well as local neighbors all happy. They also believe that Airbnb may lead the legislation for itself and other sharing-economy services. What should you take from all of this? Airbnb Cambridge is a great investment opportunity, but you will need to mind the legal aspects such as new legislations that may fall into place for commercial investors. So keep stay wide awake for any developments! Related: Why invest in an Airbnb investment property over a traditional? Top Cambridge Real Estate Neighborhoods To better understand the opportunity of investing in Cambridge real estate, check out the top neighborhoods in the city provided Mashvisor data. Wellington-Harrington A primarily residential neighborhood, Wellington Harrington has some commercial areas. It’s the second most densely populated neighborhood in the city, yet is on the more affordable end. Median Home Price: $589,000 Airbnb Occupancy Rate: 56.15% Cash on Cash Return Airbnb: 4.95% Traditional: 2.07% Average Rental Income/month Airbnb: $3,967 Traditional: $2,466 The Port Known as the hub for the US candy industry, The Port is another high-density residential neighborhood in Cambridge where about 7000 people reside. The Port lies on one side of Central Square – a hub for Massachusetts Bay Transportation Authority (MBTA) buses. Median Home Price: $794,000 Airbnb Occupancy Rate: 62.68% Cash on Cash Return Airbnb: 3.56% Traditional: 1.79% Average Rental Income/month Airbnb: $4,558 Traditional: $3,198 Cambridgeport Cambridgeport is home to about 10,000 residents. It’s among the most expensive neighborhoods in Cambridge real estate. Cambridgeport lies on the other side of Central Square across from The Port. Median Home Price: $1,110,500 Airbnb Occupancy Rate: 58.82% Cash on Cash Return Airbnb: 2.2% Traditional: 2.48% Average Rental Income/month Airbnb: $4,168 Traditional: $4,277 Riverside This is where most of Harvard University students reside. So if you’re considering a traditional Cambridge real estate investment, definitely consider Riverside. The neighborhood is situated along the Charles River, and is known for its convenient location, with Harvard Square and Central Square at each of its ends. Median Home Price: $798,000 Airbnb Occupancy Rate: 50.82% Cash on Cash Return Airbnb: 2.87% Traditional: 1.28% Average Rental Income/month Airbnb: $3,820 Traditional: $2,697 Related: How to Buy a Rental Property Using Mashvisor To Sum Up On Cambridge Real Estate As you can see from the data and analysis above, despite being a very challenging market, there’s a great opportunity in investing in Cambridge real estate. To make the most out of investing in Cambridge real estate, be sure to use Mashvisor’s investment analytical tools to view information on CoC return, cap and occupancy rates, estimated rental income, and much more. Our interactive investment property calculator will help you decide where you can make the most returns in Cambridge real estate! Related: How Data Makes Real Estate Investors Rich: A Mini Guide Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsCambridge MACash on Cash ReturnRental IncomeTraditional 0 FacebookTwitterGoogle +PinterestLinkedin Mays Kuhail Mays is a Content Writer and freelance creative writer with multiple years of experience in US real estate market analysis. Mays has background in communication, content development, and digital marketing. She holds a BA in Business Administration and Marketing. Previous Post How About Baltimore Real Estate Investments? Next Post The Ultimate Guide to Getting Started in Real Estate Investing Related Posts Real Estate Investments Location: The Best Neighborhoods for Nashville Residential Income Properties Buying Multifamily Property in the California Real Estate Market 2018 Denver Rental Market 2019: Top 5 Trends 5 Best States to Invest in Real Estate in 2021: Where Americans Are Moving What’s Up With Seattle Real Estate Investing New Orleans Real Estate Investing 2017 Aspen Real Estate: Are the High Prices Worth It? Traditional Rentals: Where to Invest in the California Housing Market 2018 Investing in a Duplex for Sale in Houston, TX: A Complete Guide The Top 4 Neighborhoods for Houston Real Estate Investing Where to Find the Best Multi Family Homes for Sale in Philadelphia Austin Real Estate Market 2018: The Best Neighborhoods to Invest In Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment.