Back Bay Condos Welcome to Boston!

Back Bay Investment Properties

Boston's Back Bay neighborhood is one of the most sought-after in the city. The eclectic mix of old and new, high-rise and low-rise, commercial and residential gives a vibrant air to the area. The historic neighborhood is characterized by Victorian brownstones that create an attractive street front. Wide streets, attractively landscaped boulevards and Boston Commons, the city's most popular park, contribute to the aesthetic appeal of a well-established neighborhood. If you are interested in Boston residential investment property, Back Bay is an excellent place to look.

Back Bay Residential Investments

Boston is the third most expensive city for apartment rentals in the U.S. after San Francisco and New York, with median rents for a one-bedroom at $2,300 per month according to a report by Zumper. Back Bay rents are higher than the average for Boston. There are a few reasons for this trend. Back Bay is one of the most popular areas of Boston, with the mix of office, retail, entertainment and residential properties making Back Bay particularly attractive. Fewer properties, both rental and sales, come on the market and when they do, they don't last long.

As of May 10, median rental listings for Back Bay versus Boston show a higher trend:

Studio $1,775 $1,750
1 Bedroom $2,800 $2,300
2 Bedroom $4,344 $2,700
3 Bedroom $6,000 $3,000
4 Bedroom $5,500 $3,650

With over 11,000 residents, the neighborhood offers properties such as high-end luxury condos and apartments and renovated historic mansions that serve as single-family and multi-family homes ranging from studios to four or more bedrooms. With purchase prices for houses in Back Bay almost double that of the rest of Boston, approximately 34 percent of the residents own their own homes. The remaining 66 percent rent their accommodations. Median rents in Back Bay average 21 percent above those of greater Boston.

Boston has one of the lowest apartment vacancy rates in the U.S., so rentals that come on the market usually go quickly. Properties for sale in Back Bay have continued to appreciate over the years. An analysis of more than 200 Back Bay properties shows that those sold within two years of purchase increased more 5 percent over the buyer's purchase price. The median sales price for Back Bay increased 513.8% over the period between February 15 and May 15, 2015, and the same period one year ago (February 15 and May 15, 2014). The average price per square foot increased 63.4 percent over last year to $1,776, while the number of sales dropped almost 93 percent.

Choosing the Right Back Bay Investment Property

Working with an established Boston realtor who knows the market and has experience in assessing investment property potential is an integral part of becoming a successful real estate investor. Boston City Properties can help identify potential income-producing properties that suit your investment goals. We offer free access to a city-wide data base of properties for rent and sale offered by not only our company but all the major property brokerages in Boston.

If you are an established investor, you know how to calculate the benefits of rental income through tax write-offs, leveraged appreciation and evaluating the advantages of rental income. If you are new to investing, we can help you calculate a property's potential net income by figuring the capitalization rate, annual rents and annual expenses. Experienced agents with Boston City Properties work closely with each client to make sure that investment goals are understood and appropriately matched to real estate offerings.

Boston City Properties is Boston's 1031 exchange expert. Under the U.S. Internal Revenue Code, Section 1031 allows exchange of certain types of properties and deferring capital gains losses. We can help you locate an exchange property that suits your investment strategies.