Boston Leads Northeast as One of Top 20 Real Estate Markets
A combination of an in-depth online survey and face-to-face interviews, the Emerging Trends in Real Estate report by PricewaterhouseCoopers (PwC) is one of the oldest, most highly regarded annual market outlooks for the real estate industry. When it comes to the top real estate markets to watch, 2016 is forecast as a "year of movement" nation-wide, with changes in many cities' rankings compared to the previous year. Despite the change in rankings, Boston remains securely in the top 20. Powered by the appeal of several choice neighborhoods, it continues to be viewed as one of the top lab markets in the country. Steady growth in the STEM (Science, Technology, Engineering, and Mathematics) industries, and a continued concentration in education and medical employment, are expected to support that position.
Out of the 13 markets that comprise the survey's Northeast region, Boston ranked number one. Our city is expected to outperform the regional average in multifamily, industrial, housing, and hotel markets. It is is also projected to be the top Northeast region office market, followed by Manhattan, Brooklyn, and Pittsburgh. Boston's overall score is one of the top in the survey, led by a strong outlook for investor demand and capital availability.
2016 Boston Metro Projections
Total (in millions): 4.8
Increase (2016 over 2015): +0.7%
5-year annual net migration (000s): 15.25
Millennials (age 16-35)
% of total population: 28.4%
5-year growth: +2.9%
Median home sales price: $421,677
Increase (2016 over 2015): +3.2%
Affordability index*: 125.18
Predicted change in the single-family home market, 2016 over 2015
Granted permits: +16.8%
Started construction: +22.3%
Completed construction: +34.9%
Rent as % of household income: 37.6%
Space under construction as % of inventory: +1%
*Percentage of the median home price that can be purchased with the median income for the market.
Find this story and more in our Spring 2016 South End Stakeholders' Report. Read all about the latest real estate trends, forecasts, and an in-depth look at the South End community.