Is Massachusetts good for real estate investment? 

Nearby educational institutions are among the considerations when buying an investment property. Massachusetts public education system operates 1,751 schools. On the other hand, the state has 866 private schools.  

It just also happens that Massachusetts is the location of hundreds of world-renowned universities such as MIT, Harvard, and Tufts.  Top liberal arts colleges such as Amherst, Wellesley, Smith, and Williams are also found in Massachusetts. It is no surprise that Massachusetts tops the list of the most educated state. In short-term rentals, investors can expect a high number of exchange students needing an Airbnb.

How much does Airbnb make in Massachusetts?

According to March 2023 data from Airbtics, a one-bedroom Airbnb property in Boston can earn $204 from a strong occupancy rate of 79%. Its peak season is June. This can bring in $6,399 for this month alone. Annually, the said property size can generate an income of $56,935. These figures can manage the expectations from investing in Boston real estate market.

Pros of buying an Airbnb Property in Boston

Boston is a city with a lot of history and serves as a destination for art, culture and much more! The best is that you will never run out of things to do here. However, there’s more to learn as to why we recommend purchasing a property in this city. Here are some of the major reasons why you should consider buying a property for Airbnb in Boston:

1. Boston’s economic stability

Boston is one of the fastest-growing cities in the USA as well as the economic and political heart of Massachusetts. The city enjoys a strong economy with a booming job market where its main activities are concentrated in the education, healthcare and technology sectors. 

2. Bustling tourist destination!

It’s a given fact that Boston can easily catch people’s attention with its fascinating history and eye-catching architecture! Thanks to this it is considered a top historical destination on the East Coast, so you can expect the arrival of many visitors throughout the year here. In addition to this, the city also enjoys a great location as it’s close to other destinations like Salem, Caped Cod and even to the mountains of New Hampshire!

3. Home to renowned institutes of higher education

This city is a leader when it comes to higher education institutes since it’s home to prestigious institutes like Boston University, Harvard and many others that attract many students that are interested in studying here. Hence, this surely will catch the attention of investors who are interested in the student real estate market!

What to Expect When Purchasing a Property in Boston?

Now that we know the pros of investing in Boston, let’s take a quick look at some of the cons. It’s always better to look at the two sides of each coin in order to properly set your expectations!

1. High cost of living

While Boston’s economic and tourism sectors are quite attractive, it also has some downsides as the cost of living here is pretty high, 46% higher than the national average and 12% more than other cities in Massachusetts. In addition to that, the housing market prices are also higher than the national average, being this $942K.

2. Property Taxes are high

Located in Middlesex County, you should be aware that the average effective tax rate here is 1.24%, which is higher than the national average of 0.99%. Unfortunately, overall in Massachusetts, homeowners face one of the largest annual property tax bills in the country according to SmartAsset.

3. Be ready to face the terrible traffic!

As a lively and bustling city, you can already guess that the traffic in Boston can end up being a nightmare. In fact, Boston occupies the 4th place as one of the cities with the highest traffic delay time, here, drivers lose around 134hrs in congestion per year. Aside from this, you can also expect that it’s really difficult to find a parking spot available here.

Best Neighborhoods for Airbnb in Boston

Let’s take a closer look at the important Airbnb key metrics to discover which is the most profitable neighborhood in Boston. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods: