The strong job market coupled with suppressed supply nearly guarantees investors that product in the core markets will remain in high demand and therefore is less likely to experience a decline in rental rates or overall value. Additionally the number of cash acquisitions is at an all time high. Therefore the likelihood of experiencing a repeat of the 2008 meltdown is nearly 0 as rising interest rates will have little effect on many of today’s investors.
Despite the fact that nearly 8,000 units are being delivered to the market place within the next few years, industry experts agree that more product is still needed. The opportunity for investors lies within the existing housing stock. Due to the cost of construxtion, many of today’s new projects carry very expensive monthly rent price tags. Therefore, If investors focus on the core markets existing supply, they can offer a relatively more affordable product when compared to new construction.
As the city expands and residents become priced out of the core down town markets, many are seeking more affordable alternatives in the towns that immediately surround Boston. Investors should experience great growth potential by catering to those in need of workforce housing.
