The Boston real estate market is making a swift recovery. With returning growth and ever-increasing occupancy, investor competition continues to drive down cap rates and drive sales prices. Rents are currently so high inside the 128, that well-funded investors can often justify building new assets rather than investing in existing properties.
Having one or more investments in multi-family real estate can keep you on the path to building generational wealth and having more freedom and opportunity in the future.
You may think that a good location, well-maintained units, attractive common areas, and the right amenities are what will keep your occupancy rates high and the property value of your apartment building up.
The truth is, it’s not enough.
Adaptive reuse and transit-oriented development are two prominent trends shaping the Northeast investment real estate market. As vacant office properties, abandoned mills and defunct retail assets are adapted for new uses such as multifamily housing, investors have opportunities to acquire Class-B and Class-C assets below market value and create the conditions to establish and maintain in-demand housing units.
Over the past ten years, we have seen a significant evolution in the multifamily market as homeownership rates nationwide have steadily declined, reaching a 50-year record low in 2015. During a recent presentation for the Institute of Real Estate Management, Connecticut Chapter, I shared insights on national trends and the regional multifamily housing market. Here are some highlights: