Year-Over-Year Rent Price Analysis
The subject of today’s snapshot is Downtown, Boston, Massachusetts. Based on our analysis, Bostons’ year-over-year average rents increased across all bedroom types.
Our standard neighborhood analysis uses a 6-month “LookBack” to establish an average baseline rent. The results from the 6-month LookBack analysis are presented in the tables below for Boston 1–2 bedroom rents from February 1, 2021 – February 1, 2022:
As the table shows, 1BR units increased by 26% from last year or $648 more, and the 2BR for units increased by 30% from last year or $952 more. As demonstrated by the table, year-over-year performance for all selected bedroom types increased in rent prices from last year.
Market Activity: Boston, Massachusetts
Are you interested in investing in Boston? Location is an important factor to consider when finding a profitable market for a rental property. The key characteristics of a good location include a strong economy, a growing labor force, and high rental demand. Below are some quick facts about the Boston rental market that can help you with your investment analysis and overall decision.
- Price-to-Rent Ratio
- Avg 2BR House Price: $1,609,794 (According to Redfin)
- Avg Annual 2BR Rent: $48,936 ($4,078 x 12 months)
- Price-to-Rent Ratio: 33
- Population Growth:
- Boston’s population increased by 9% over the last decade from 2010 to 2020 (According to US Census)
- Major Companies & Institutions: General Electric, Dunkin’ Brands, The TJX Companies, Thermo Fisher Scientific, Fidelity Investments, State Street, Akamai Technologies, Hubspot, Sun Life, Vertex Pharmaceuticals, AthenaHealth, Philips North America, Encore Boston Harbor, Wayfair, Mass General Hospital
- Employment Growth:
- Employment growth increased by 4% from 2020-2021 (According to US Bureau of Labor Statistics)
About Rentometer
Rentometer is the #1 tool for comparing residential rent rates anywhere in the U.S. To succeed as a real estate investor, you need solid, current market intelligence to help you set the right rent rates in Boston. Understanding local rents (and the factors that drive them) can help reduce investment risk, increase occupancy and improve your cash flow – and income. With Rentometer, you have local, current rents available right at your fingertips.
This article was written by the Rentometer Content Team. The Rentometer Blog features fresh takes and insights on rental housing topics, services, and technology.