Despite the presence of very affordable residential properties, particularly homes in fixer upper listing, majority of Boston, Massachusetts, residents seem to prefer to rent instead of buy. Demand for rental units has grown in the metro region, prompting several multifamily housing developers to enter the market and start big projects.
In the coming months, foreclosed homes in Boston are expected to get tough competition from new apartments and rental housing units as investments in the multifamily development sector escalates in the area. In some cases, developers who originally planned condominium projects backtracked and sought permission to build rental housing units instead. For 2011, officials are expecting construction starts for more than 20 rental buildings in the metro area, which will provide over 1,850 apartment units.
The figure is considered huge, given that properties in foreclosure listings in Massachusetts are offered cheaply and should have attracted home hunters in the region, which would have taken a huge chunk out of rental dwellings' market share. In addition, the figure is much higher than last year's total construction starts of 600. Realtors reported that out of the total number of apartment units that will be constructed this year, around 830 were initially planned as condo units.
With rental housing in such high demand, not only condo units are getting converted into apartments, but also residential properties like those under fixer upper listing. Instead of selling their homes, some are opting to rent them out to people who come looking for dwellings in the area.
According to housing market analysts, the growth in the rental market of Boston is largely due to the strong economy of the metro region, which is being buoyed by biotechnology companies and medical institutions located in the area. Analysts also stated that properties in foreclosure listings will also likely benefit and will attract more buyers in the coming months as more people move into the city to seek job opportunities.
The metro region of Boston is currently ranked third in the National Apartment Index's list of markets with the strongest multifamily rental sectors. Realtors are optimistic that despite the presence of low-priced properties in fixer upper listing, the apartment market will continue to thrive for the rest of the year.
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