What Are the Best Neighborhoods in Massachusetts for Rental Properties?
Some of the best neighborhoods in Massachusetts for rental properties include Cambridge, Boston, Somerville, Brookline, and Medford. These areas have high demand for rentals due to their proximity to major employers, universities, and entertainment. The stable economy and job market in these areas ensure consistent demand.
What Are the Average Rental Prices in the Best Neighborhoods for Rental Properties in Massachusetts?
Rental prices in the top neighborhoods range from around $2,000 for a 1-bedroom apartment to over $3,500 for a 3-bedroom house. For example, average rents in Cambridge are about $2,500 for a 1-bedroom and $3,800 for a 2-bedroom. In downtown Boston, rents average $2,800 for a 1-bedroom and $3,900 for a 2-bedroom.
Learn More: 30-year rental property loans
Which Neighborhoods in Massachusetts Have the Highest Rental Prices?
Some of the neighborhoods with the highest rental prices in Massachusetts include Back Bay in Boston, Kendall Square in Cambridge, Downtown Crossing in Boston, and Seaport District in Boston. Rents for a 1-bedroom in these areas often exceed $3,000 per month. The high demand and limited housing inventory drive up prices.
What Factors Contribute to the High Rental Prices in Some Massachusetts Neighborhoods?
Several factors lead to the expensive rents in certain Massachusetts neighborhoods:
– High-paying jobs concentrated in technology, finance, healthcare, and education sectors
– Reputation as trendy, desirable areas with access to amenities
– High demand near colleges and universities like MIT, Harvard, Boston University
– Limited housing inventory and low vacancy rates
– High costs of living including real estate prices, taxes, and transportation
How Have Rental Prices in Massachusetts Changed Over the Past Decade?
Rental prices across Massachusetts have increased significantly over the past decade. From 2011 to 2021, rents rose over 25% statewide, outpacing the national average. The limited housing supply failing to meet demand is the primary driver. Rents in Boston proper rose around 35% in that span. However, growth has slowed slightly in 2022 as remote work provides more flexibility.
What Is the Highest and Lowest Rental Price for a Single-Family Home in Massachusetts?
Currently, the highest rental price for a single-family home in Massachusetts is around $15,000 per month in the affluent Boston suburb of Brookline. The lowest price for a small single-family rental home across the state is around $1,200 per month in less populated areas like Western Massachusetts.
In summary, the top areas for rental properties in Massachusetts are located near Boston and Cambridge where job growth and limited housing inventory sustain high demand. Rental prices have risen rapidly but remain extremely high in core neighborhoods like Back Bay and Kendall Square. Investors must consider the tradeoffs between higher rents and prices in these prime locations versus more affordable secondary markets.