The Rental Market is Out of Control in Boston Luxury Real EstateJuly 12, 2014
The recent supply of Boston luxury homes for sale has been limited, and buyers who were in between homes, between jobs, or unable to find their ideal home to purchase, ended up renting Boston luxury real estate. This caused massive construction efforts to build high end rental buildings to satisfy the increased demand. Rents still tend to be outrageously high for Boston luxury homes, which is now forcing consumers to think twice about renting versus buying.
To Rent or Not to Rent? That is the Million Dollar Question
I keep getting calls from tenants in luxury rental buildings either wanting to downsize to a smaller apartment for cheaper cost of living or they’re looking to buy Boston luxury real estate instead. There are several high-end rental buildings currently in construction, and some seem to be already filled up.
We are all wondering whether the bubble is going to burst soon and the high end rental market is going to even out. Realistically, how many of these high-end rentals can be absorbed, after all, and for how long?
Some luxury rental buildings are being constructed with better finishes in preparation for condo conversion in the near future if the economy changes and the demand for rental units falls. Other buildings were built as luxury Boston condos with a rental component. Once developers decided to switch gears and turn the rentals into condos, they needed to be upgraded or the prices needed to be lower that the original sales of the condos sold. Having learned from this mistake, developers today want to be ready for the conversion without having to go through another round of upgrading for the Boston condo market.
Is it wise to still rent at these horrendously high prices, or is it smarter to buy? Talk to an experienced real estate agent and weigh your situation with the current market to make the best investment for you / your family.