If you're looking for a solid investment rental property in Massachusetts, you'll want to check out these six areas. With strong potential for appreciation and steady demand from renters, these communities are ideal for those looking to buy their first-time home or build a rental real estate portfolio.
Please note that any information provided by Doorstead is intended for informational purposes only and should not be taken as financial or investment advice. We strongly advise you to consult a qualified financial or investment professional before making any financial decisions or investments. With that in mind, keep reading to learn more about the best areas in Massachusetts to purchase investment rental property!
Boston is a great place to invest in rental property. With high salaries and low unemployment rates, it's no surprise that demand for rental properties remains strong. The city offers easy access to universities, corporate headquarters, healthcare centers, markets, and museums – creating plenty of opportunity for increased income potential.
Boston is one of the most expensive markets in Massachusetts, but its potential for appreciation and steady value makes it a worthy investment. More affordable neighborhoods like East Boston and Dorchester offer investors great deals on rental investments, making finding a good return in an established market possible.
According to data from Zumper, the median rent for a one-bedroom apartment in Boston is $2,700, with 65% of households being renter-occupied. The average home value in Boston in 2023 is $707,055, showing a 3.2% increase from last year, according to data from Zillow.
We've created a comprehensive guide to Boston's housing market for homeowners and renters in 2023 to provide homeowners and renters with a detailed understanding of market trends and conditions in Boston.
Boasting steady rental demand and an influx of wealthy vacationers during the summer months, investors can enjoy excellent returns in this sought-after region.
Cape Cod offers potential investors access to luxury homes at a fraction of the cost of other areas in Massachusetts. Plenty of neighborhoods make for a good investment – from white sand beachfront properties to homes in quaint fishing villages. The Cape Cod region is home to many affluent communities, making it an ideal spot for investors looking to rent vacation homes or luxury rental properties.
Leighton Rentals reveals that the average rental cost for a Cape Cod summer home is approximately $1,700 each week. The median sales price of a Cape Cod residence is close to $398,000.
Cape Cod is a unique Massachusetts region to invest in rental properties, and understanding your target market will help you select what property type to purchase in Cape Cod.
According to Guaranteed Rate, the median home value is $184,000. According to the Berkshire Eagles, median rent ranges in Berkshire County range from $650 to $1,300 monthly. The Berkshires is Massachusetts' best-loved rural area, making it an ideal location for those seeking a slower pace of life. The Berkshires is worth considering whether you're looking to purchase property as an investment or want to rent a home and become part of the local community.
Realtor.com's data reveals that in December 2022, Berkshire County, MA's median listing home price remained unchanged from the previous year-valued at $349.9K. Additionally, it had a median listing home price per square foot of $216, while its median sold home value was an impressive sum of $300.2K. Realtor.com reports that Berkshire County, MA, was experiencing a market equilibrium in December 2022; thus, the supply and demand of homes are on par. It takes approximately 76 days on average for houses to sell after they hit the real estate market.
Worcester has a strong economy and plenty of potential for real estate investors. With its low unemployment rate and highly educated workforce, there's plenty of demand for quality rentals.
According to data from Zillow, the median rent across all property types in Worcester is $1,850, increasing by about $200 compared to 2022. The median sale price of a home in Worcester is $415,000 currently, up 17.7% year-over-year (according to data from Redfin). Houses in Worcester sell after 21 days on the market on average.
Worcester presents an excellent chance for those looking to invest in real estate without breaking the bank. This Massachusetts city provides limitless opportunities for property value growth and lucrative investment returns through rental properties.
Springfield is the third largest city in Massachusetts, with over 154,000 people. Springfield is a prime property investment destination for those looking to capitalize on the Massachusetts real estate market. Springfield's size creates profitable property investment opportunities that are no longer available in some of the smaller towns around the state.
According to RentCafe data, the average rent in Springfield is $1,287, up 32% year-over-year. (You can see a detailed rental breakdown by neighborhood here). According to Realtor.com data, the median listing home price is $244.9k, trending upwards. The housing market in Springfield, MA, is quite competitive due to the limited availability of homes for sale. It's deemed a seller's market by Realtor.com, and houses sell after an average of 62 days on the market.
The city is known for its diverse housing market, offering affordable rental options in single- and multi-family homes. With a strong job market and a median home price lower than the national average, Springfield is an ideal place to begin investing in real estate.
Cambridge is a city located just outside Boston with over 105,000 people. The typical home value in Cambridge is up 4.7% from last year, according to Realtor.com, and is considered a seller's market.
Cambridge is one of the most desirable places to live in Massachusetts – offering plenty of opportunities for increased rental income potential.
Cambridge is home to two of the best universities in the world, Harvard and MIT, and is known for its vibrant culture, restaurants, and nightlife. With a strong job market, high salaries, and a low unemployment rate, you can count on steady demand from renters in this area.
Investment in rental property in Cambridge can be a lucrative opportunity, thanks to the robust economy fueled by top universities. Despite the initial investment required, Cambridge offers attractive rental yields and the potential for property appreciation. Additionally, its proximity to Boston enhances the property's value and increases potential returns.
If you're considering investing in rental property in Massachusetts, these six cities are worth a closer look. Each city's median home value and average rent suggest what types of properties you might find, and their population sizes indicate a steady pool of potential tenants. Ultimately, any of these cities could be an excellent choice for rental property investment.
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