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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 Sale
124
Airbnb Properties
1,451
Rental Properties
9,823
Traditional Vacancy rate
2.80%
Airbnb Occupancy Rate
65.29%
Mashmeter
77.77%
Median Price
$938,003
Median Rent Price
$2,843
Price/sqft
$689
Median Days on Market
79
Price to Rent Ratio
28.2
Average Cap Rate
Airbnb
2.27%
Traditional
0.74%
Average Rental Income
Airbnb
$4,111
Traditional
$2,767
 
Median Household Income
$85,691
Population
685,094
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$3,066$3,555$4,268$5,222$6,763
Traditional$1,922$2,189$2,730$3,585$3,234
Boston, MA - Homes for Sale - Newly Listed
$599,000
MLS 72539046
799 Saratoga St
Boston, MA 2128
East Boston
Single Family Residential
3 beds3 baths2,106 sq.ft.
CAP RATE
Trad. 1.27%Airbnb 2.92%
$379,000
MLS 72539224
26 Waverly St #109
Boston, MA 2135
Allston
Condo/Coop
1 beds1 baths690 sq.ft.
CAP RATE
Trad. 0.17%Airbnb 3.61%
$324,900
MLS 72537414
74 BURT ST
Boston, MA 2124
South Dorchester
Other
3 beds1 baths0 sq.ft.
CAP RATE
Trad. 3.45%Airbnb 5.73%
$928,000
MLS 72538282
506 E. Third Street
Boston, MA 2127
South Boston
Single Family Residential
2 beds2 baths1,650 sq.ft.
CAP RATE
Trad. 0.83%Airbnb 1.97%
Top Performing Boston Properties
$150,000
MLS 72533296
76 Elm St #217
Boston, MA 2130
Jamaica Plain
Condo/Coop
1 beds1 baths550 sq.ft.
CAP RATE
Trad. 5.30%Airbnb 7.74%
$250,000
MLS 72509863
66 St. James St. #106
Boston, MA 2119
Roxbury
Condo/Coop
2 beds2 baths875 sq.ft.
CAP RATE
Trad. 2.28%Airbnb 7.69%
$799,000
MLS 72502108
290 Columbus Avenue #6
Boston, MA 2116
Back Bay
Single Family Residential
2 beds1 baths711 sq.ft.
CAP RATE
Trad. 1.52%Airbnb 6.31%
$499,000
MLS 72501299
2 Webster Avenue
Boston, MA 2128
North End
Single Family Residential
3 beds2 baths1,335 sq.ft.
CAP RATE
Trad. 3.46%Airbnb 5.79%
Recently Sold Homes in Boston, MA
$585,000
MLS 72479989
76 Hamilton Street
Boston, MA 2125
Roxbury
Multi Family
4 beds2 baths2,000 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$1,500,000
MLS 72528677
58 Frankfort St
Boston, MA 2128
East Boston
Multi Family
6 beds3 baths4,395 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$1,750,000
MLS 72507614
226-228 Princeton St
Boston, MA 2128
East Boston
Multi Family
9 beds7 baths5,493 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$1,200,000
MLS 72518719
1 Westford Pl
Boston, MA 2134
Allston
Multi Family
9 beds3 baths3,570 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
$2,995,000
MLS 72272074
105 Revere St
Boston, MA 2114
Beacon Hill
Multi Family
3 beds3 baths2,777 sq.ft.
CAP RATE
Trad. -0.78%Airbnb N/A
Homes Below Median Price in the Boston, MA Real Estate Market
$150,000
MLS 72533296
76 Elm St #217
Boston, MA 2130
Jamaica Plain
Condo/Coop
1 beds1 baths550 sq.ft.
CAP RATE
Trad. 5.30%Airbnb 7.74%
$250,000
MLS 72509863
66 St. James St. #106
Boston, MA 2119
Roxbury
Condo/Coop
2 beds2 baths875 sq.ft.
CAP RATE
Trad. 2.28%Airbnb 7.69%
$799,000
MLS 72502108
290 Columbus Avenue #6
Boston, MA 2116
Back Bay
Single Family Residential
2 beds1 baths711 sq.ft.
CAP RATE
Trad. 1.52%Airbnb 6.31%
$499,000
MLS 72501299
2 Webster Avenue
Boston, MA 2128
North End
Single Family Residential
3 beds2 baths1,335 sq.ft.
CAP RATE
Trad. 3.46%Airbnb 5.79%
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
$80 per night
Entire home/apt · 1 bed
Architects Live-in Studio in Boston
666
$177 per night
Entire home/apt · 1 bed
Back Bay! Best Location in Boston!
516
$135 per night
$158 per night
Entire home/apt · 1 bed
Designer 1BR North End Modern Cove
475
Boston, MA Homes for Rent
$2,650
MLS 72538912
56 Farquhar St #2
Boston, MA
Roslindale
Other
3 beds1 baths1,100 sq.ft.
$1,925
MLS 72538835
$1,900
MLS 72538930
92 Alpheus #2
Boston, MA
Roslindale
Other
3 beds1 baths1,000 sq.ft.
$3,750
MLS 72538597
7 Grimes Street #SF
Boston, MA
South Boston
Other
4 beds1 baths1,200 sq.ft.
Boston, MA Open Houses
Open 12 PM to 1:30 PM
$599,000
MLS 72539046
799 Saratoga St
Boston, MA 2128
East Boston
Single Family Residential
3 beds3 baths2,106 sq.ft.
CAP RATE
Trad. 1.27%Airbnb 2.92%
Open 1:30 PM to 3 PM
$379,000
MLS 72539224
26 Waverly St #109
Boston, MA 2135
Allston
Condo/Coop
1 beds1 baths690 sq.ft.
CAP RATE
Trad. 0.17%Airbnb 3.61%
Open 12:30 PM to 2:30 PM
$928,000
MLS 72538282
506 E. Third Street
Boston, MA 2127
South Boston
Single Family Residential
2 beds2 baths1,650 sq.ft.
CAP RATE
Trad. 0.83%Airbnb 1.97%
Open 10:30 AM to 12 PM
$799,900
MLS 72536492
110 Commercial St #5
Boston, MA 2109
Haymarket
Condo/Coop
2 beds1 baths987 sq.ft.
CAP RATE
Trad. 0.69%Airbnb 3.37%
Best Boston Neighborhoods for Buying Investment Property
87%
Mashmeter
property price
$1,999,999
Median
cap rate
2.47%
Traditional
3.60%
Airbnb
rental income
$4,123
Traditional
$5,995
Airbnb
homes for sale
3
occupancy rate
69%
Airbnb
87%
Mashmeter
property price
$899,900
Median
cap rate
4.20%
Traditional
7.95%
Airbnb
rental income
$3,153
Traditional
$5,959
Airbnb
homes for sale
5
occupancy rate
67%
Airbnb
87%
Mashmeter
property price
$849,450
Median
cap rate
4.13%
Traditional
8.39%
Airbnb
rental income
$2,927
Traditional
$5,939
Airbnb
homes for sale
2
occupancy rate
67%
Airbnb
85%
Mashmeter
property price
$1,000,000
Median
cap rate
4.01%
Traditional
6.88%
Airbnb
rental income
$3,341
Traditional
$5,737
Airbnb
homes for sale
2
occupancy rate
68%
Airbnb
83%
Mashmeter
property price
$990,000
Median
cap rate
3.65%
Traditional
7.09%
Airbnb
rental income
$3,013
Traditional
$5,848
Airbnb
homes for sale
1
occupancy rate
67%
Airbnb
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