The Boston Metro area boasts more young adults aged 20 to 34 than any other major U.S. city. The number of Millennials is also expected to grow during the next 5 years! This is one of the reasons that real estate investors are attracted to the Boston Metro, according to a report by the New England Business Journal.
The strong number of Millennial residents is expected to spur future growth in employment and apartment demand. The Boston Metro area’s highly-educated Millennial workforce enjoys plenty of opportunity in our robust economy, along with ample recreation, culture and public transportation. Boston’s walkable neighborhoods and urban amenities appeal to young adults who are more apt to be renters in the city, rather than commuters from the suburbs.
Real estate investors have taken notice. Multifamily investors and developers have pushed the sales volumes of apartment properties to $1.45 billion in the first five months of 2015. This is an increase of nearly $1 billion in sales volumes compared to the same period in 2014. The most popular area for investors is near the urban core, where apartment pricing has reached an all-time high of $250,000 per unit.
Naturally, rents are climbing as well. Apartment rent increases are most pronounced in the urban core and surrounding neighborhoods, averaging about 5% per year. Despite rising rents, vacancies have remained below norm at 4% to 4.5%. While new development will add to Boston’s urban housing stock by 2016, housing demand is expected to remain strong, with projected rent increases averaging 3% per year. Premium locations, such as the Seaport District, are expected to command above-average rents.
The Boston Metro area offers commercial real estate investors and business owners a world of opportunity! When you are ready to explore buying or leasing Boston Metro commercial real estate, we can help you find the ideal property. Please contact us today for expert guidance!