If you’ve been paying attention to the Boston real estate market, you can’t help to think what an investment property in Boston could do for your portfolio. Given the Metro areas steady population growth and seemingly unlimited student housing demand, rent prices have been on the rise over the past decade.
Unfortunately, at least in the City of Boston, multi-family homes for sale are always in short supply. Recent housing development in Boston has been focused mainly on luxury high rises and apartment buildings. The number of multi family homes for sale in Boston sold in Boston over the past 365 days is 749, considerably less than that of single family homes and condos, which saw 1,100 and 5,733 sales transactions respectively. The median sales price for multi-family homes in the City of Boston is $975K during that same time span.
So that leaves the question: where should an investor look in Boston for a decent multi family home to buy?
Most Affordable Neighborhoods in Boston for Multi Family Homes
Looking at median sales prices for multi-family in Boston, there are only 7 neighborhoods that fall under the $1M mark. They are mostly situated on the outer edges of Boston Proper:
- Hyde Park - $738,158
- Roslindale - $837,406
- West Roxbury - $848,607
- Mattapan - $880,000
- East Boston - $937,440
- Dorchester - $956,389
- Roxbury - $958,520
One could argue that all of these neighborhoods in Boston are “up and coming”, but there are some there are further along than others. East Boston, West Roxbury, and Roxbury may be the best options on this list in terms of current conditions.
Best Neighborhoods For Multi Family Homes in Boston
Of course price is just one of many factors to consider when investing in a multi-family home. You also want to factor in rental demand into your decision. Boston’s rental market is driven by student housing demand, so any multi-family properties that are in popular student areas will see considerably more demand than neighborhoods situated away from Boston’s many local universities.
When we take this into account alongside price, you’ll find a number of neighborhoods where you could find a multifamily for a comparatively decent price in one of these student enclaves. The following neighborhoods all have median prices below $1.5M and given their location, an investor can expect to see plenty of demand for renters and higher rent yields.
- Lower Allston - $1,094,091
- Brighton - $1,161,641
- Jamaica Plain - $1,174,413
- Charlestown - $1,239,810
- South Boston - $1,313,889