Boston is an internationally renowned city, famous for its historical significance, gorgeous architecture, and network of elite universities. Boston has become one of the hottest real estate markets in the country. New luxury developments are constantly being developed and built in the capital of Massachusetts.
The Second Most Expensive City in the United States
Boston is considered to be the second most expensive city in the United States. On the majority of “Most Expensive City” lists, Boston is in the top five, if not the top three. According to the statistics we used, the only city more expensive than Boston is San Francisco. Yes, that means Boston is pricier than New York City, the largest and most famous in the United States.
No matter how you want to look at it, Boston is not a cheap city to live in. The cost of housing is more than twice as high as the United States average. Food, utilities, and transportation are all pricier in Boston than elsewhere in the country.
Why are Boston’s Rent Prices So High?
Readers and residents alike scratch their heads trying to understand why Boston is so expensive to live in. Keep reading to learn about Boston’s real estate market and what causes such high costs for housing.
High Demand, Low Inventory
One of the reasons why Boston is so pricey is because of the high demand for housing. It’s a small city that thousands of people move to each year. When many people find their dream apartments here, they hold onto them. This growing demand in Boston can never be met, and there isn’t enough new construction in the area to keep up with the influx of people moving to the city.
Because of this strain on supply, landlords and developers know they can price their housing extremely high because someone will eventually move in. The simple economic trend of supply and demand explains the Boston real estate industry, causing prices to skyrocket.
Year-Round Demand
Unlike many real estate markets in the country, Boston does not operate on a seasonal basis. Demand for housing increases year-round, not just in the summer. That’s because people are constantly relocating to Boston throughout the year, since this international city is packed full of a variety of businesses and industries all operating on different schedules.
During the pandemic, Boston has seen a bit of a seasonal slide, with rent prices being significantly cheaper during the wintertime right now. But it’s unclear how long this trend will last. Experts predict that the end of the pandemic will lead to a resumption of typical industry trends.
Large Student Population
There can be a huge turnover of housing in Boston due to the abundance of students at all times of years. During the school year, from September until around early May, students dominate the temporary housing market and rent as close to their institutions as possible.
There’s constant turnover, as many students are only in the country for a couple months at a time. There is an upside to this, because there are a lot of apartments who boast student-friendly prices. But landing an apartment can be difficult and competitive, especially at peak times for students, like the beginning of the school year and summer.
Desire for Short Commutes
Many residents of the city work in downtown Boston, an area that is extremely expensive and not known for being a residential neighborhood. Those who choose to live in the suburbs, do have long train or car rides into the city that can be unappealing after a while. Residents of Boston are constantly looking for new apartments to move to if they’re dissatisfied with their current living situation. This is another demographic competing for housing in this city.
