Real estate in Boston has been on solid ground in 2014, but new projections suggest the best is yet to come.
Real estate in Boston is on firm footing. Home sales, especially in the condo markets, are strong. All-cash sales remain below the national average. It’s luxury market is one of the best in the nation. And distressed sales are almost nonexistent.
Those are all encouraging trends, and a new analysis has added even more good news to the fold – in its predictions for 2015, real estate website Trulia has named Boston the No. 1 market to watch in the entire U.S.
Job Growth, Low Vacancies and Millennials Make a Good Housing Market
In its analysis, Trulia stated that three factors went into its No. 1 ranking for Boston, and when one considers what Trulia took in mind, it’s not hard to see why they were so high on Boston:
1. Job Growth – Since June of last year, the unemployment rate in the Boston area has fallen 19 percent to just 6.3 percent of the work force, while job growth is projected to be 1.7 percent this year, according to Forbes. Even better, high-tech employment growth is 4.7 percent in Boston, and college attainment is a very positive 41.1 percent.
2. Low Vacancies – According to the third quarter apartment trends report from Reis, the multifamily vacancy rate in Boston was just 4.2 percent, and on the single-family side of the market, months-supply remains low at just 3.5. Such low numbers, Trulia points point, can only mean one thing in a market with Boston’s level of demand – more construction activity; hardly surprising, then, that Boston’s construction market is among the top 10 in the nation.
3. Land of the Millennials – Finally, Boston remains a hotbed of activity for the nation’s Millennial generation, which will shape housing’s future more than any group. According to an analysis by Redfin, in Boston’s 02127 ZIP code, Millennials comprise 31 percent of the population, and a separate study by Niche ranked Boston as the sixth best city in the nation for Millennials.
When all those factors come together, it’s not difficult to see why Trulia rated Boston so highly. As Nick Aalerud, a principal broker with AA Premier Properties, LLC, explained it to us, “We have everything here; history; quaint and luxury living; great schools; and unmatched higher educational institutions. [Plus], it’s the engineering and bio hub of the universe.”