Boston Luxury Real Estate Update: Rental Season in Full SwingAugust 11, 2012
August is a crazy rental month in the greater Boston area. With colleges and graduate schools starting back in September, everyone is scrambling to find an apartment. Due to inventory shortage and the high demand for living space, Boston luxury real estate rents are skyrocketing. This pricy trend is not unique to the high- end market, but smaller rental units are leasing as if there’s no tomorrow.
Better to Buy a Boston Condo Than Rent
Landlords definitely have the upper hand, and they are naming their price. Recent rental properties have had several applications and renters end up paying more than the original lease price.
There two categories of rentals:
- Super luxury long-term rentals in excess of $10,0000+/ month. These are typically located in most desired neighborhoods, like brownstones in the Back Bay/ Beacon Hill, or Midtown service buildings with amenities. People who are in between decisions on making their next move generally rent these apartments.
- Smaller apartments that are rented by the education-related population. This includes students who missed out on college housing and end up paying huge amounts for rent. Many 1 and 2 bedroom rentals are going in excess of $5,000/ month.
When the monthly rental lease exceeds a mortgage payment, it makes so much more sense to buy a Boston condo. Additionally, consider the very low mortgage rate combined with a sale market that is still on the verge of recovery. Boston luxury real estate prices are still very reasonable! If a college student is going to live in Boston for the next 3 or 4 years (at least), building equity is a no brainer.
Interested in buying rather than renting? Contact me to weigh your options and figure out what your next move should be.