Why Is the Boston Luxury Real Estate Market So Strong Right Now?June 23, 2018
Buyers keep asking why the residential market in Boston keeps getting stronger. In certain price ranges, the frustration level is high, especially through a multiple bidding process.
Although there are many developments being built, the absorption rate seems to be higher than what is coming out of the Boston luxury homes pipeline. So, who are all the buyers of these new homes?
The answer is simple:
- Boston is the No. 1 hub in the country for the biotech industry with comparatively high average salaries.
- Boston is also becoming a tech hub with several major corporate relocations in the area.
- More and more, students graduating from top schools are opting to stay in Boston and begin building their careers here.
- Empty nesters are moving to the desirable city from affluent suburbs.
- Families with children are no longer moving out of the city.
All of these factors contribute to the Boston luxury homes shortage, as well as the price hike. For the most part, new buildings under construction sell out of Boston luxury homes even before completion.
Most of the new Boston luxury real estate projects are strategically located near public transportation, or the developers try to provide transportation to and from the mass transit line. Some developers are even planning to provide water taxis.
A record 5,400 building permits were issued in 2017. Not to mention the retail centers that develop once the residents create high density areas. Living in Boston means no commuting, and residents are able to work and play within walking distance. This convenient lifestyle is becoming quite desirable and in high demand, which explains the tightness in the marketplace.