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While New England was represented in a recent analysis from Realtor.com regarding the top markets for residential real estate investors, Greater Boston failed to crack the top 20.
The New Haven, Connecticut metro area came in at seventh overall on the list. Boston was all the way down in 21st place. The New Haven area had a median residential listing price of $408,000 and a 13.6 percent investor share of sales in the first quarter of 2024. Greater Boston had a median price of $850,000 but only 8.8 percent of residential property sales were to investors.
“For buyers interested in investing in rental properties or other real estate, it’s key to know which areas are both affordable and in high demand to be able to capitalize on any investment opportunities, especially with today’s higher prices and rates,” Danielle Hale, chief economist at Realtor.com, said in a statement. “With low vacancy rates and strong demand, the markets we’ve highlighted as top markets for investment opportunity offer a great mix of affordability and growth potential. These spots give aspiring investors a chance to tap into long-term growth and set themselves up for solid returns as the market shifts.”
The commonwealth’s monthly median single-family sale price continues to increase on a year-over-year basis – in August, it reached all-time high of $630,000 according to The Warren Group, publisher of Banker & Tradesman. In Greater Boston, the median single-family sale price reached $795,000 in August.
“As the rental market eases in many areas, the Midwest and Northeast stand out for their combination of affordability and stability,” Hannah Jones, Realtor.com senior economic research analyst, said in a statement. “These regions offer investors a prime chance to secure steady rental income and tap into growing demand, making them attractive for both seasoned and first-time investors alike.”
Dayton, Ohio topped the list for investment opportunity with its below-average home prices (median listing price of $239K) and sufficient demand (4.7 percent rental vacancy rate in 2024).
Graph by Sam Minton | Banker & Tradesman Staff
