In March, the COVID-19 pandemic put Boston’s economy at a standstill.
The future is still uncertain for many of the major industries that keep the city thriving—but much like in many other parts of the country, the real estate industry has fared better than most.
Though many experts feel that we won’t be able to see the full economic impact of the pandemic for some time, we’ve gathered some of the most significant ways that COVID-19 has affected Boston real estate.
Both indoor and outdoor space is now a more cherished commodity than ever. This has led to a nationwide increase in demand for single-family homes, something which has impacted Boston as well.
A report by the Greater Boston Area Association of Realtors shows that the median price for single-family homes has increased by 4.5%.
This means it might be a good time to sell a single-family home, but if you’re seeking one out, you might be facing a competitive market.
Boston’s demand for high-end, luxury homes has only increased since the beginning of the pandemic.
From March to June, sales of homes over $1 million increased by 217%, an incredible growth considering the short window of time.
This is likely because of the increased emphasis on the importance of our at-home space and amenities due to the pandemic, with more buyers seeking luxury features like home gyms, pools, outdoor living spaces, etc.
With more of the population seeking spacious and suburban options for themselves and their families, those who would like to continue renting will find a much more accommodating market.
Rent prices in the city have seen a 6% year-over-year decrease due to an increased supply and decreased demand.
This means renters hold more power than they did previously in negotiating lease terms, and property owners/managers will have to offer increasingly competitive advantages to attract tenants.
Residential property isn’t the only sector impacted by the pandemic—some of the hardest-hit areas have been commercial properties, according to a CBRE report.
In particular, hotels and office spaces have been negatively impacted due to the lack of tourism and the realities of remote work.
Currently, there’s more uncertainty than definitive answers—and it seems it’ll take more time to see how the pandemic’s long-term impact on this sector really plays out.
If you’re looking for experts in Boston luxury real estate who can help guide you through every step of a transaction, get in touch with the Callon Walker Group.