Rental Prices are Skyrocketing in Boston Luxury Real EstateNovember 9, 2013
Having passed the heat of rental season, the leasing market has slowed down, but not the Boston luxury real estate prices. The rental prices for the brand new rental units are soaring. There are fewer people looking for rentals at this time of the year, but the luxury rentals are mushrooming all over the city in different neighborhoods.
Boston Luxury Homes – For Rent
The consumer was faced with the dilemma of whether to buy or rent a year or two ago, because of the uncertainty in the economy and also the shortage of inventory for sale. The Boston luxury real estate inventory for sale has not gotten any better. Additionally, not too many properties are coming up for sale.
Given the high rental market demand and low mortgage rates, it’s still better to buy, even if it is not your dream home. Consider it an interim home until the market stabilizes and then you can sell and buy something else. Buying into a good Boston luxury homes building or a prime location will ensure you won’t lose your investment – as long as you do your homework.
The rents in brand new, high end buildings in the Back Bay & Midtown command a price tag of $4500+ for a one bedroom and up to $7500 for a two bedroom. Let’s not even talk about the larger rental asking monthly prices…they can go up to 35 to 40K, depending on the building and the amenities.
Boston has been named as one of the most expensive cities in terms of rentals in the nation. Some of my out of town clients, not being familiar with the different neighborhoods available, prefer to rent first to get the lay of the land before buying. Given the current real estate climate, I encourage my clients to consider buying a very small place as an investment while exploring the city’s unique neighborhoods.