Keep reading to learn more about the 4 best places to invest in real estate in Massachusetts in 2022.
Massachusetts is a small state of nearly 7 million residents that offers many historical, natural, and cultural attractions. The state has played an instrumental role in the cultural, scientific, and commercial advancement of the United States. Its big cities and small New England towns offer prospective real estate investors countless opportunities to find properties that meet their budgets and investment portfolios.
In this article, we will take a look at some factors that make Massachusetts one of the best states to buy investment properties in. We will then explore the 4 best places to invest in real estate in Massachusetts in 2022.
Why Buying Investment Property in Massachusetts is a Good Idea
There are many reasons why buying investment property in Massachusetts is a good idea. These include:
- Strong economic growth. Massachusetts has fared better than many states since the start of the COVID-19 pandemic. The state experienced job growth of 4% over the past year. And future job growth over the next 10 years is projected to be nearly 40%, which is 7% higher than job growth nationwide. U.S. News & World Report listed Massachusetts as the 9th strongest economy in the country.
- Excellent educational system. Massachusetts offers a mix of great public and private schools, as well as some of the leading colleges and universities in the country. The state’s educational system helps ensure a steady demand for housing.
- Market diversity. The real estate market in Massachusetts is highly diverse. Potential investors can typically find quality investment properties regardless of their desired price ranges. Moreover, investors can choose to buy investment properties in big cities like Boston or Worcester, or quaint New England towns.
The Best Areas in Massachusetts for Real Estate Investment in 2022
Newton is a city of nearly 90,000 residents that is situated in Middlesex County. The city is located just 7 miles from downtown Boston. Newton is an affluent city that is experiencing significant economic growth. The median household income in Newton grew by 8.14% to $151,068 between 2018 and 2019. The real estate market has mirrored the city’s economic growth. As of February 2022, the median sold home price across Newton’s 13 neighborhoods was $1.2 million, with the average home lasting just 68 days on the market.
The rental market is also strong. Approximately 30% of the population rents their homes in the city. The most affordable neighborhoods are Auburndale and West Newton, where renters pay an average of $2,484 per month. The area South of Beacon Street to Route 9 and Upper Falls rents for an average of $3,606 per month. While buying investment property in Newton may cost more than some of the other best places to invest in real estate in Massachusetts, investors could realize significant returns as the market continues to grow.
Worcester is a city located in central Massachusetts. The city serves as the county seat of Worcester County and is home to approximately 206,000 residents, making it the second-most populous city in New England after Boston. Worcester is located about 40 miles west of Boston and its central location has earned it the name of the “Heart of the Commonwealth.”
According to Realtor.com, Worcester is among the top 10 hottest real estate markets in 2022. Despite rising home prices, the city is significantly more affordable than Boston. As of February 2022, the median home sold price was $348,000, which represents a 15.6% year-over-year increase. But what makes Worcester particularly appealing to investors is the diversity of the real estate market. Homes across the city’s 35 neighborhoods range from as little as $40,000 for a condo to $1.3 million for a large single-family or multi-family home.
The city offers a strong rental market, with nearly 50% of residents renting their homes. Average monthly rents tend to be significantly lower than in more affluent cities like Newton, but given the lower entry costs for investors, rental properties offer attractive returns.
Taunton is a city located about 40 miles south of Boston in Bristol County, Massachusetts. The city is one of the oldest in the U.S., founded in 1637 by members of the Plymouth Colony. Nearly 60,000 residents call Taunton home. The city features a strong and diverse local economy, with an emphasis on semiconductor, silicon, and electronics manufacturing.
As of February 2022, the median sold home price was $364,200 across Taunton’s 11 neighborhoods. This represents a 14.2% year-over-year increase. Approximately 60% of the city’s residents own their homes, resulting in a sizable rental market. Like Worcester, the average rents in Taunton tend to be lower than in larger and more affluent cities. The average rent for an apartment in Taunton is $1,645, which is less than half of the going rate for an apartment in Boston ($3,549). Despite lower average rents, affordable properties, strong demand, and a solid local economy are all factors that make Taunton one of the best places to invest in real estate in Massachusetts.
Quincy is a coastal city and the largest in Norfolk County. Its 101,636 residents make it the 7th largest in the state. The city is one of Boston’s immediate southern suburbs and an ideal place to live for commuters. Quincy took spot #6 on Livability.com’s 2021 Top Best Places to Live in America list.
Properties tend to be more affordable than they are in Boston and more affluent suburbs like Newton. As of February 2022, the median sold home price was $645,000, representing a 6.5% year-over-year increase.
Quincy offers investors options at nearly every price point, with homes ranging from $214,900 up to $3 million. Only about ½ of the population own their homes. The median rent for an apartment in Quincy is $2,135 – a solid 12% year-over-year increase.
There are many reasons why buying investment property in Massachusetts is a good idea. The state offers a strong and growing economy and potential investment properties at many different price points. As one of the strongest economies in the country, there are countless towns and cities in Massachusetts where investors can find the perfect investment properties. In this article, we identified 4 that we consider to be the best areas in Massachusetts for real estate investment.
West Forest Capital is among the top hard money lenders Massachusetts. We have helped countless investors to secure financing throughout the state. As one of the top hard money lenders Massachusetts, we offer a broad range of financing options to real estate investors to purchase and refinance non-owner-occupied properties throughout Massachusetts. To learn more about our loan programs or to discuss a potential deal, contact a member of our team today.