After 2021’s market rebound, Massachusetts investors expect to find opportunities in commercial properties. As reported by the Boston Globe, trends that may continue in 2022 include sales and rentals of single-family homes.
Data compiled by CoreLogic found that between October 2020 and 2021 rental costs for single-family residences increased by about 11%. As more companies offer remote working options for their employees, renters have shown a preference for moving to the suburbs. Renting a home with the amenities and space available for a home office has created greater demand than apartment leasing.
Markets with technology hubs may surge
Along with San Francisco and New York, Boston’s real estate market stands to gain from a surge in single-family housing rentals. With Boston’s technology industry, its workforce may seek more affordable housing in the suburbs, as noted by Realtor.com. Worcester, for example, offers affordable homes with access to Boston through commuter trains.
Rhode Island also provides employees an alternative to city living. Commuting from the suburbs offers workers a way to afford to live in a home rather than a Boston apartment. Growing suburban areas also offer commercial development opportunities. As residents move in, the area may need more shopping centers or mixed-use facilities.
Higher home purchase prices may increase rental demand
A study reported on Boston Agent Magazine’s website expects home prices to increase by 15% in 2022. As a result of diminishing supply, the available homes could become more valuable. Rental prices may rise as demand for single-family housing increases.
Single-family homes may generate income faster than apartments and condos. Buying homes for rental income may prove fruitful in suburbs such as Worcester, Barnstable and Springfield. Before placing an offer to buy a property, however, investors may wish to consider drafting contract terms that could help protect them if unforeseen circumstances arise.