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Boston is the state capital and largest city in Massachusetts. It is the most populous city in the New England region, with nearly 700,000 residents. Home to almost 4.9 million residents, Greater Boston ranks as the 10th largest metro area in the US. Despite the slower overall population growth rate, Boston has been experiencing colossal growth lately thanks to an immigration boom. This growth, along with the fact that 67.2% of the residents are renters rather than homeowners (according to NeighborhoodScout), make the Boston real estate market an ideal location for rental property investments.

Boston is regarded as the unofficial capital of New England for the economic and cultural impact it has on the entire region. It enjoys a diverse economic base, a high concentration of educated millenials, as well as an employment growth rate that is comparable to the national level. Home to prestigious universities such as MIT and Harvard, the city is one of the world’s best-known academic hubs. Nearly 100 colleges and universities are located in the Greater Boston area, attracting more than 350,000 students from all over the world and bringing a total of $4.8 billion annually to the local economy. Some of the nation’s most well-regarded teaching hospitals are based in Boston, including Brigham and Women’s Hospital, Massachusetts General Hospital, and Beth Israel Deaconess Medical Center.

Boston is a world leader in innovation and entrepreneurship as it offers entrepreneurs a friendly environment for starting a business and launching new startups. The metropolitan area is home to a number of Fortune 500 company headquarters, including well-recognized names such as General Electric and Raytheon. The financial services industry is important to Boston; the city’s financial district includes some of the country’s largest banks, mutual funds, and insurance firms. Tourism is also a major contributor to the economy. Millions of tourists flock to the Beantown each year to visit historic sites relating to the American Revolution, such as the Freedom Trail and the Boston National Historical Park. Boston’s economic base also includes biotechnology, information technology, government activities, professional and business services, manufacturing, retail, and trade. 


The Boston real estate market was named one of the Top 10 U.S. Markets to Watch by PWC for the second year in a row, in its annual Emerging Trends in Real Estate: United States and Canada 2019 report. It is the highest-ranked gateway market in this year’s survey, meaning it’s the top market where real estate investments are safe and have high rates of return. According to the report, Boston is at the center of several real estate trends, like redevelopment, technology, and sustainability, and offers a number of opportunities for investment and development.

Boston Realtors and Real Estate Agents


Boston  Real Estate Investment Performance
Facts and Market Trends in Boston
Homes For Sale55
Airbnb Properties961
Rental Properties6,134
Traditional Vacancy rate3.70%
Airbnb Occupancy Rate51.01%
Mashmeter75.53%
Median Price$685,000
Median Rent Price$2,744
Price/sqft$809
Median Days on Market106
Price to Rent Ratio34.0
Average Cap Rate
Airbnb-0.10%
Traditional1.14%
Average Rental Income
Airbnb$2,190
Traditional$2,350
 
Median Household Income$85,691
Population685,094
Transportation in Boston
81 / 100
Very Walkable
72 / 100
Excellent Transit
69 / 100
Bikeable
Boston  Rent Prices
RENTAL STRATEGY STUDIOS 1 ROOM 2 ROOMS 3 ROOMS 4 ROOMS
Airbnb$1,615$1,951$2,324$3,729$5,781
Traditional$1,786$2,042$2,654$3,071$3,417
Boston, MA - Homes for Sale - Newly Listed
$850,000
MLS 72813784
568 E Broadway #1
Boston, MA 2127
South Boston
Other
2 beds2 baths1,285 sq.ft.
CAP RATE
Trad. 1.13%Airbnb -1.27%
$799,000
MLS 72814538
19 Realton Rd
Boston, MA 2132
West Roxbury
Single Family Residential
3 beds3 baths1,798 sq.ft.
CAP RATE
Trad. 0.72%Airbnb 1.45%
$525,000
MLS 72814327
14 N Munroe Ter #2
Boston, MA 2122
South Dorchester
Condo/Coop
2 beds2 baths960 sq.ft.
CAP RATE
Trad. 1.42%Airbnb 0.92%
$995,000
MLS 72813419
465 Beacon St #1
Boston, MA 2115
Back Bay
Single Family Residential
1 beds1 baths995 sq.ft.
CAP RATE
Trad. 0.33%Airbnb -0.52%
Top Performing Boston Properties
$930,000
MLS
10 WATERLOO ST
Boston, MA 2136
Hyde Park
Single Family Residential
4 beds2 baths2,798 sq.ft.
CAP RATE
Trad. 0.44%Airbnb 4.01%
$635,000
MLS 72778066
45 Garden St #3
Boston, MA 2114
Beacon Hill
Other
2 beds1 baths525 sq.ft.
CAP RATE
Trad. 3.63%Airbnb 3.88%
$1,700,000
MLS 72801273
179 Mass ave #3
Boston, MA 2115
South End
Condo/Coop
3 beds2 baths1,726 sq.ft.
CAP RATE
Trad. 0.62%Airbnb 3.15%
$464,900
MLS 000002131
81 Grew Avenue #81
Boston, MA 2131
Roslindale
Townhouse
3 beds3 baths1,500 sq.ft.
CAP RATE
Trad. 2.19%Airbnb 3.11%
Recently Sold Homes in Boston, MA
$799,900
MLS 72784502
143-171 Hyde Park Ave #157A
Boston, MA 2130
Jamaica Plain
Multi Family
3 beds3 baths1,648 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$3,250,000
MLS 72801274
179 Mass Ave 2&3
Boston, MA 2115
Allston
Multi Family
9 beds4 baths3,421 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$879,000
MLS 72807421
54 Jewett St
Boston, MA 2131
Roslindale
Multi Family
6 beds3 baths3,878 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$1,200,000
MLS 72801938
108 Southern Ave
Boston, MA 2124
Mattapan
Multi Family
9 beds3 baths3,648 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Property Value Changes and Real Estate Appreciation in the Boston Housing Market

The Boston housing market has witnessed strong real estate appreciation in recent years. According to NeighborhoodScout, since Q1 of 2000, Boston property values have increased by 136.48%, which brings an average annual appreciation rate of 4.57%. Zillow reported a 3.4% increase in home values over the past year.

The Boston housing market is currently a buyer’s market, meaning there are many more available homes for sale than buyers seeking to purchase properties. This is the ideal time for prospective real estate investors to buy an investment property, since they might be able to choose a great home from a larger housing inventory and potentially buy it at a lower cost.

Boston, MA Top Multi Family Homes
Homes Below Median Price in the Boston, MA Real Estate Market
$930,000
MLS
10 WATERLOO ST
Boston, MA 2136
Hyde Park
Single Family Residential
4 beds2 baths2,798 sq.ft.
CAP RATE
Trad. 0.44%Airbnb 4.01%
$635,000
MLS 72778066
45 Garden St #3
Boston, MA 2114
Beacon Hill
Other
2 beds1 baths525 sq.ft.
CAP RATE
Trad. 3.63%Airbnb 3.88%
$1,700,000
MLS 72801273
179 Mass ave #3
Boston, MA 2115
South End
Condo/Coop
3 beds2 baths1,726 sq.ft.
CAP RATE
Trad. 0.62%Airbnb 3.15%
$464,900
MLS 000002131
81 Grew Avenue #81
Boston, MA 2131
Roslindale
Townhouse
3 beds3 baths1,500 sq.ft.
CAP RATE
Trad. 2.19%Airbnb 3.11%
Boston Airbnb Growth and Regulations

The Airbnb industry in Boston is booming. Out of a total of 1.2 million Airbnb guests in the state in 2018, 465,500 people stayed in Airbnb rentals in the Boston area. The local Airbnb hosts earned a total of $101.9 million, which accounted for 40% of Massachusetts’ total Airbnb income. 

In 2018, a citywide ordinance established new guidelines and regulations for short-term rentals in Boston. Airbnb Boston hosts renting out their home for 28 days or less are required to register with the city and pay the same 5.7% state tax as hotels. Under the new law, the person operating a short-term rental must actually live at the address, meaning that non-owner occupied short-term rentals are illegal. Airbnb Boston owner-operators are allowed to list either a room within their primary residence (Limited Share Unit), an entire unit available for short-term rental at their primary residence (Home Share Unit), or an adjacent unit within an owner-occupied two- or three-unit multi family home (Owner Adjacent Unit).  

Short-term rental registration costs $25 for Limited Share Units, and $200 for both Home Share Units and Owner Adjacent Units, and is valid for one year. Hosts must also obtain a Business Certificate through the City Clerk’s office at a fee of $65 for Massachusetts residents and $100 for non-residents, valid for 4 years. Violation of the Airbnb regulations could result in fines.

Boston, MA Top Airbnb Homes
$174 per night
$121 per night
Entire home/apt · 1 bed
Private Apartment- Minutes from T!
561
$168 per night
$80 per night
Boston, MA Homes for Rent
$3,000
MLS 72813134
55 E Concord St #1
Boston, MA
South End
Other
2 beds2 baths1,100 sq.ft.
$1,950
MLS 72813163
$2,850
MLS 72812844
445 Main #1
Boston, MA
Charlestown
Other
2 beds2 baths1,069 sq.ft.
$2,800
MLS 72810016
64 Gates Street #3
Boston, MA
South Boston
Other
2 beds1 baths683 sq.ft.
Boston, MA Open Houses
Open 1:30 PM to 3 PM
$799,000
MLS 72814538
19 Realton Rd
Boston, MA 2132
West Roxbury
Single Family Residential
3 beds3 baths1,798 sq.ft.
CAP RATE
Trad. 0.72%Airbnb 1.45%
Open 12 PM to 2 PM
$549,900
MLS 72812786
37 Deforest St
Boston, MA 2136
Roslindale
Single Family Residential
3 beds2 baths1,669 sq.ft.
CAP RATE
Trad. 2.30%Airbnb 3.08%
Open 11 AM to 2 PM
$389,000
MLS 72810628
47-49 Wrentham St #3
Boston, MA 2124
South Dorchester
Condo/Coop
1 beds1 baths705 sq.ft.
CAP RATE
Trad. 2.98%Airbnb 2.03%
Open 11:30 AM to 1 PM
$675,000
MLS 72808446
11 Mercer St #2
Boston, MA 2127
South Boston
Condo/Coop
2 beds2 baths808 sq.ft.
CAP RATE
Trad. 1.84%Airbnb -1.18%
Best Boston Neighborhoods for Buying Investment Property
87%
Mashmeter
property price
$2,350,000
Median
cap rate
1.47%
Traditional
2.04%
Airbnb
rental income
$2,881
Traditional
$4,004
Airbnb
homes for sale
0
occupancy rate
58%
Airbnb
88%
Mashmeter
property price
$799,000
Median
cap rate
4.26%
Traditional
5.82%
Airbnb
rental income
$2,835
Traditional
$3,878
Airbnb
homes for sale
3
occupancy rate
56%
Airbnb
83%
Mashmeter
property price
$1,675,000
Median
cap rate
2.30%
Traditional
3.95%
Airbnb
rental income
$3,208
Traditional
$5,513
Airbnb
homes for sale
0
occupancy rate
43%
Airbnb
84%
Mashmeter
property price
$3,199,000
Median
cap rate
1.12%
Traditional
1.55%
Airbnb
rental income
$2,979
Traditional
$4,136
Airbnb
homes for sale
1
occupancy rate
62%
Airbnb
81%
Mashmeter
property price
$650,000
Median
cap rate
5.59%
Traditional
9.41%
Airbnb
rental income
$3,026
Traditional
$5,096
Airbnb
homes for sale
0
occupancy rate
50%
Airbnb