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Investor Insight for the Boston Multifamily Apartment Market

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Apartment Loans BostonReal estate investors are attracted toward lucrative options in Boston, MA. Whether the plan is to buy a triplex unit or an entire apartment complex, it makes sense to study the rental data before signing a purchase agreement. Direct Apartment Lenders shares some insight about the Boston multifamily apartment market. 

Living in Boston

Boston residents enjoy an envious quality of life that is not found in other cities.

Job prospects are favorable among Boston’s top employers, such as Partners Healthcare, Beth Israel Lahey Health, University of Massachusetts, Harvard University, CVS Health and Dell Technologies.

  

There are an enormous amount of culinary options in Boston that food enthusiasts rave about. 

Visitors and folks who live in Boston can enjoy endless types of entertainment, such as dance clubs, theaters and comedy clubs.  

Educational opportunities are excellent in Boston, as some of the top universities for academics and for research are within close proximity. 

Area walking trails, waterways for boating and local museums provide cultural information for everyone to enjoy.

Sports fans love to cheer for Boston’s professional teams, such as the MLB Boston Red Socks, NHL Boston Bruins, NBA Boston Celtics, the MLS New England Revolution and the NFL New England Patriots. 

Apartment Rental Rates in Boston, MA

The average apartment rental rate in Boston is $3,143, according to published data from RentCafe in May 2021. This rental rate reflects a six percent decline in the year-over-year rate change.

Within the most affordable Boston neighborhoods, the rental rates range around $1,800 to $2,200 per month.

The most expensive neighborhoods in Boston have apartment rental rates between $3,400 and $3,500.

51 percent of the households in Boston are renter occupied. This is great news for an investor, as a large city with more renter-occupied households versus owner-occupied households could lead toward prosperous opportunities.   

Statistical Data for Boston

The estimated population for Boston was 692,600 as of July 1, 2019, per the U.S. Census Bureau. These figures represent a 12.1 percent increase above the estimated population of 617,594 from April 1, 2010.

The U.S. Census Bureau also reported that Boston’s median household income was $71,115 in 2019. 

Data for Multifamily Properties With 5+ Units in Boston

252 multifamily units were sold in May 2021, according to the Greater Boston Association of Realtors. This was an increase of 176.9 percent above the 91 multifamily units that were sold in May 2020.

According to a report by Wronka, LTD. and CoStar, Boston’s multifamily cap rate was 4.7 percent in February 2021. 

Outlook for the Boston Apartment Market

Overall, the multifamily sales volume in Boston was lower in 2020 versus the reported sales from recent years. 

A large percentage of the reduced sales in the first and second quarter of 2020 were attributed to the Covid-19 pandemic, however, sales for Boston apartment units soared in the fourth quarter of 2020.

As one of the priciest apartment markets in the United States, Boston continuously attracts talented working professionals and some of the most competitive students.

The momentum from fourth quarter 2020 should give investors some confidence going forward in the Boston apartment market for the remainder of 2021. 

Financing for an Apartment in Boston, MA

Few things would be more frustrating for an investor than to find a wonderful multifamily apartment building without having the ability to secure a commercial mortgage loan.

With a multifamily apartment building loan from a nationally recognized mortgage lender, an investor will have more confidence when negotiating the sales price for an income-producing property.

Direct Apartment Lenders has a variety of commercial financing programs for multifamily properties. An investor can apply for a short-term mortgage loan, such as a 5/1, 7/1 or a 10/1 adjustable-rate mortgage or for a 30-year fixed-rate mortgage loan.

Our programs are perfect for small business owners and for investors who have a credit score of 600 points or higher. 

Borrowers are often amazed to learn about our no bank statement apartment loans and our no tax return requirement for apartment loans.

With our fast mortgage loan processing and in-house underwriting support, a borrower could receive funding in Boston for an apartment loan in less than 45 days.

Applying for a Commercial Mortgage Loan in the Boston Apartment Market

Today, an investor can apply online for a commercial mortgage loan to buy an apartment building or to refinance an apartment complex.

For properties that meet our requirements, we can quickly lend up to $5,000,000.

Investors are encouraged to submit loan scenarios via our Get a Quote page for more information. 

We employ kind and helpful loan professionals who are ready to provide investors with exceptional customer support.

Contact Direct Apartment Lenders today to inquire about a commercial mortgage loan in Boston or to discuss financing for a multifamily apartment building anywhere in the USA.

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