We all know Boston is an expensive place to live, but Boston is so expensive that unless you’re making at least $78,000 a year, you’re going to need a roommate.
That information comes from Nestpick, an apartment search engine with a study profiled in Boston Magazine. The study says that Bostonian’s earning the median United States salary have to spend 51 percent of their income to live without roommates.
But according to an opinion piece from the Boston Globe, that may not be possible. The article pointed out that Boston real estate averages $681 per square foot. Just outside the city it’s only $263.
Even through the city is expensive to buy or rent a Boston condo, the city still ranks 79th in the world for best placed to live for young people.
So what’s holding renters back from buying a Boston Condo?
According to the latest Aspiring Home Buyers Profile by the National Association of Realtors (NAR), 82% of surveyed renters desire to own a home in the future, with 80% believing homeownership is a big part of achieving their American Dream.
The profile went on to state that 50% of millennials believe that their rent will increase, with 20% believing that an increase in rent will be the catalyst that pushes them to consider buying a home vs. renewing their lease.
So, what is holding renters back?
Boston condos
What would make renters take the plunge?
Boston condos
NAR’s Chief Economist, Lawrence Yun believes that,
“Housing demand in 2018 will be fueled by more millennials finally deciding to marry and have kids and the expectations that solid job growth and the strengthening economy will push incomes higher.”
Yun goes on to warn that,
“However, with prices and mortgage rates also expected to increase, affordability pressures will persist. That is why it is critical for much of the country to start seeing a significant hike in new and existing housing supply. Otherwise, many would-be first-time buyers will be forced to continue renting and not reach their dream of being a homeowner.”
Bottom Line
If you are one of the many Boston condo owners and your condo no longer fit your needs and are looking to move up to your dream luxury condo, now is a great time to list your starter home! First-time buyers are out in force looking to achieve their American Dream.
