You can’t beat Boston neighborhoods for history, charm, and culture. Property investors, however, must consider many other factors when looking for the best neighborhoods to live in. What is the likely return on investment (ROI)? Are home prices and rents increasing year-over-year (YOY)? The following sections look at 6 investment-worthy Boston neighborhoods.
Charlestown may be on the expensive side, but that doesn’t dampen its popularity. Established in 1628, it’s Boston’s oldest neighborhood. History surrounds you in Charlestown, from the Bunker Hill Monument to eighteenth-century townhouses. In December 2022, Charlestown’s median home value increased more than 5 percent YOY, to $845,000. Rents are trending upward, too. One-bedroom apartments have increased more than 25 percent, going for $2545.
A vibrant neighborhood, Chelsea offers property investors excellent ROI potential. With the Silver Line running through Chelsea, it’s an easy 30-minute ride into Boston. Chelsea is one of the more affordable Boston neighborhoods, with the median home price at $500,000 in December 2022. Chelsea has much to offer to investors focused on the bottom line.
Whether you’re investing in a rental property or looking to flip a Victorian home, Dorchester is an attractive neighborhood. Nearly 25 percent of Bostonians live in Dorchester, and with good reason. Boston’s largest neighborhood manages to balance modern and trendy with a 400-year history. By the end of 2022, the median home sale price was $745,000, up 18 percent from the previous year. This popular neighborhood has an average monthly rent of $3,000.
East Boston is a popular neighborhood for young professionals close to public transit. One reason is its location near downtown Boston and Logan airport. Although home prices fluctuated in 2021, they had stabilized by the end of 2022. The $665,000 median listing home price increased 2.5 percent YOY. Investors who plan to flip properties may want to consider “Eastie.” Rents are also trending upward, with the January 2023 median 2-bedroom rent at $3,000.
Quincy is just outside Boston, with a quaint neighborhood feel and convenient Red Line transit. Its waterfront location adds an extra bit of charm. Plus, it’s the final resting place of two US Presidents: John Adams and John Quincy Adams. With median home price up about 5 percent to $626,124, Quincy is an affordable yet investment-worthy alternative to Boston. Rents are stable, averaging $3,004 for a 2-bedroom apartment.
With rapid development in its future, Roxbury belongs on the property investor radar. Expect to see student housing construction from Northeastern University. Roxbury Crossing and Ruggles also offer promising investment opportunities. Rents and property values are trending upward, with a YOY median home listing price of $700,000 — a 4.2 percent increase. The median monthly rent is $3650.
The general contracting professionals at RH Blanchard have more than a decade of experience in the best neighborhoods to live in in Boston. If your investment property needs upgrades, contact us for a free quote.