Boston Housing Market Cools and Prices Decelerate
The most recent MLS data suggests that the real estate market in Boston may be cooling down as we begin 2022. The 90 day median sales prices for single family homes in Boston for Q4 2021 ($758K) marked a -7.05% decrease compared to the previous quarter. That is one of the few times in the past decade where Boston’s quarterly single family price has slipped.
Condos and multi family homes in Boston saw median prices remain relatively flat during the same time span. Boston condos sold at +1.34% higher in the final quarter of 2021 compared to Q3, while multi-family properties in Boston saw their 90 day median price drop by -1.43%.
Total monthly sales saw a steep drop off at the end of last year. Boston recorded 656 residential real estate transactions in December of 2021, which is down -21.25% from August’s total sold (833). While it’s normal for sales to drop off slightly in the last few months of the year, this was a larger margin than we’re used to seeing.
Boston Suburbs Where Rent Dropped the Most Since COVID Began
One of the most interesting trends to watch in real estate over the past 2 years has been the impressive growth achieved by suburban markets around the country. The pandemic caused seismic shifts in housing markets, as populations dispersed away from densely populated areas and sought more spacious living accomodations where social distancing was easy and remote work was comfortable. This was especially true in Boston, where in 2020, Downtown’s vacancy rate soared to over 25% and apartment availability was lowest in the outer areas.
Much of this demand shift was a combination of remote work and remote learning at local Universities. Now that most of Boston’s student’s have returned in Fall 2021, we can get a better sense of whether the shift in demand was a temporary phenomena or if it’s a trend that’s here to stay. Supply levels for Boston apartments contracted rapidly in the latter half of 2021, while the recovery was slower in most of the metro’s suburban markets.
As a result, the rent price growth experienced by most of the suburban markets in 2020 has reversed course. Currently 8 out of Boston’s 12 closest suburbs are showing a 2 year loss in average rent price. Here are the 4 neighborhoods where rents have dropped the most.
Fenway Apartment Rental Market Report 2022
Fenway’s apartment rental market has been on a wild ride since COVID began. In 2020, Fenway’s real-time vacancy rate (RTVR) rocketed to 17.87% in September. That marked the 2nd highest RTVR recorded by all neighborhoods during the pandemic, behind Downtown (25.24%).
From there, Fenway’s apartment supply issues only worsened. By April 2021, the real-time availability rate for Fenway apartments (24.37%) was 3rd highest out of all neighborhoods behind Allston (26.8%) and Downtown (25.37%). Then, starting in April, we witnessed one of the fastest market corrections in history. At that point, the worst of the pandemic seemed to have passed and schools announced plans to reopen in fall 2021.
Boston apartment renters came out in full force as initial COVID fears began to wane. We witnessed what was arguably the fastest rental supply absorption in Boston’s history. Fenway’s RTAR contracted to 0.61% by late November, down an astonishing -97.53% in a 6 month span. It was also down -80% from Fenway’s pre-COVID RTAR in late November 2019 (3.05%).
South Boston Average Property NOI
The neighborhood of South Boston is the pride of Beantown in more ways than one. Not only is it an iconic neighborhood steeped in rich history, its housing market has been one of the rising stars of the past decade. It is the dream of many local investors to own an investment property in South Boston, but with real estate prices as high as they are, profitability may seem out of reach.
If you think the ship has sailed on investment properties in South Boston, think again. There are some opportunities for profitable investments if you know what type of properties to look out for. In this article, we’ll analyze the estimated NOI for different types of homes for sale in South Boston. We are calculating NOI expenses based on a standard loan and the median sales price for each type of property. We’re also deducting yearly standard operating expenses (property taxes, homeowner’s insurance and maintenance). Annual operating income is based on the average rent price for apartments in South Boston multiplied by 12.
Analyzing the Effects Remote Learning Had On The Housing Economy
Remote learning was and still is one of the worst debacles of the last two years. Aside from school performance metrics and overall student morale being abysmal, the effects remote learning had on local economies was significant in many areas nationwide. Few metro markets saw the same housing market upheaval as did Boston, where the apartment vacancy rate soared to a record 8% in September 2020.
I suppose that shouldn’t be a surprise in a city where it’s estimated that nearly half of all leases are signed for 9/1. Boston’s many area Universities account for roughly 138,000 residents, a large percentage of which seek off campus housing in various neighborhoods around Boston. When campuses mandated remote learning for Fall 2020, the effect it had on the demand for apartments in Boston was seismic.
Not only did vacancies soar to record levels, apartment availability hit an unprecedented 13.4% in March of 2020. That same month, many of Boston’s largest schools announced plans to eliminate remote learning for Fall of 2021. As a result, if you analyze apartment supply data from April 2020 through today, you’ll see one of the fastest market corrections in history. Over 85% of the available inventory was absorbed and we’re now seeing some of the lowest apartment supply on record in many neighborhoods.
Boston Apartment Rental Market Report 2022
Looking back at the last two years of rental market data, it’s safe to say that few metro markets have experienced the same level of upheaval and subsequent recovery as Boston. In our 2021 Boston rental market report, we detailed an unprecedented increase in rental supply numbers that occurred as a result of COVID-19. Roughly one year later, the data suggests our Boston apartment market has not only corrected itself, but it’s possibly even stronger than it was prior to the pandemic.
Boston Apartment Supply Metrics Sink Below Pre-Pandemic Levels
Both of Boston’s key apartment supply metrics, real-time vacancy rate (RTVR) and real-time availability rate (RTAR), have sunk below pre-pandemic levels (-36.36% and -40.00% from January 2020 respectively). Comparing these same metrics to January 2021, when we were nearing the worst of the COVID-induced supply glut, we see that availability of Boston apartments has decreased by -67.20%. The vacancy rate has dropped by a staggering -86.88% in the same time span. What a difference a year makes.
What is Postpartum Thyroiditis?
Postpartum thyroiditis is a condition that occurs in about 5% of women after pregnancy. It is when the immune system produces anti-thyroid antibodies which attack the thyroid gland, causing it to become inflamed. The thyroid is critical to your body’s hormone regulation, and for pregnant women already going through hormone changes, it is a common issue they experience.
Luckily for most, it is not a permanent condition and typically wanes a year after delivery. Still, it’s good to know the risk factors and how to treat it if you are affected.
How Can Hyperthyroidism Be A Risk For Preganant Woment
Thyroid dysfunction is an issue that affects many pregnant women. Hyperthyroidism, while not as common as hypothyroidism, affects .2% of pregnancies. Hyperthyroidism occurs when the thyroid is overactive, and can lead to increased heart rate, feeling hot, shaky hands, weight loss, trouble sleeping, and anxiety. Hyperthyroidism can also affect your pregnancy, so here’s some advice for moms-to-be.
How Can Hypothyroidism Be A Risk For Pregnant Women
Hypothyroidism is a common health concern for pregnant women. It affects 2-3% of pregnancies and it is usually caused by an autoimmune disorder called Hashimoto’s disease, which is when the immune system produces antibodies that attack the thyroid. Hypothyroidism is an underactive thyroid gland, and those who are affected by it typically suffer from a lack of energy, feeling cold, muscle cramps, constipation, and problems focusing.
Common Birth Defects in Babies
For expecting mothers, your new baby’s health will always be top of mind. And one of the biggest concerns for moms-to-be is birth defects. Even though the probability of birth defects is low in most cases, the thought of having a baby with a birth defect can keep an expecting mom up at night.
If you do the research, you’ll find that these types of problems with newborns are very rare, and there are certain things you can do to reduce your chances of having a baby with birth defects.
