Here are the three driving factors in our Boston market right now.
Today I want to share the three factors driving the residential real estate market during this health crisis.
The first factor that you haven’t heard much about in the media yet is the amount of commercial office space that’s available. After 9/11 in Boston, we saw that number hit about three million. Currently, we’re at about two million, and that’s up from the little over one million we had in the second quarter of the year. Many companies are sending the message that they’re not going to be bringing their employees back to the office in the same way as before the pandemic.
The work-from-home trend we’ve been seeing in the last couple of years was, of course, accelerated when the coronavirus hit. According to the Harvard Review, possibly as much as 30% of the workforce is going to be working remotely post-pandemic.
The next factor is the rental market. In Boston, we’re experiencing two and a half times the rental inventory this year compared to last year. When September 1 rolls around, many landlords are not going to have rent to collect and will have to decide whether to lower their prices or sell.
The third factor is the large migration of young couples to the suburbs earlier than they would have in the past. That’s driven by their need for space; they want extra bedrooms, space to work from home, and outdoor areas. Smaller living space for couples isn’t working anymore.
If you have questions about these three factors or real estate in general, you can always reach out to me via phone or email. I’d be happy to help you.