The number of millionaires in Boston has risen by 50% in the past ten years, and it’s easy to see why. The place has a historic charm, globally recognized universities—including Harvard, Cambridge, and Tufts—and has an array of recreational opportunities that will keep you engaged.

Thinking of making it your second home? 

Boston luxury real estate will leave you spoiled for choice, with options ranging from apartments and duplexes to waterfront condos. But is it a good financial investment? 

Plus Render gives you insights into the industry, and how a virtual tour can be used for highly immersive experiences. 

Is Boston a Good Place To Buy Real Estate?

With a gross domestic product (GDP) of $640.49 billion, Boston’s economy is resilient and growing. Even if there are downturns in revenue, the increase in per capita income ensures the city can bounce back stronger than ever.

Here are some factors that contribute to it:

Good Appreciation Rates 

Home prices in Boston increased by 6.13% over the past year, making it the ultimate investment opportunity for high returns. 

Properties in Back Bay, Beacon Hills, Brookline, Jamaica Plain, North End, Seaport District, and South End will continue to appreciate because inventory hovers at a historic low while buyer demand remains high. 

Throw in top-notch amenities along with the availability of recreation, entertainment, and accessible facilities, and you can easily amass multiple bids when it’s time to sell.

High Rental Yields 

Boston has about 152,000 students annually across 35 schools and universities. Many international students are wealthy and live off-campus. Hence, lease rates and the demand for local housing remain high.

Another factor that contributes to a competitive housing market is the booming job industry, with growth consistent across major sectors. It is home to a robust network of venture capitalists, which has created high-paying jobs and an attractive average salary of $89,000. These factors allow homeowners to take home an average rental yield of 4.56%.

Low Vacancy Rates

Boston has low vacancy rates.  Only 0.4% of homes in the Metro area were vacant by the end of 2023. You can use your rental income to reduce the financial burden of mortgage payments. And if you structure it right, you’ll pay less on interest while shortening your repayment term!

Rich and Varied Culture 

Boston is sometimes called the Athens of America because of its great cultural influence and intellectual citizens. The diversity in cuisines, languages, traditions, and performing arts means you’ll have multiple opportunities to pursue varied interests. 

Though residents are generally reserved, decent family-friendly programs and a thriving immigrant and academic scene ensure that you can find a tribe of like-minded individuals.

Bring a Good Real Estate Agent on Board

The Boston luxury real estate market is more expensive than other places, but there’s wiggle room for negotiation! Partner with a reputed realtor to navigate the terrain. 

They have a more granular understanding of the biz and can help you examine property valuations so you can weigh the benefits against the potential risks.

Additionally, the best agents have access to pocket listings. You’ll get exclusive previews of some of the finest homes before they hit the market. Pair that with their expert guidance, insights, and negotiation skills, and you can offload prime real estate at a competitive price.

Read This Before Investing in Boston

Follow these tips for a sound real estate investment:

Some Neighborhoods Are Better Than Others 

The Boston luxury real estate market goes beyond the city; it extends to the fancy suburbs. If you aren’t willing to part with your upscale lifestyle but still want peace and quiet, here are some neighborhoods to consider:

Belmont 

Its mix of city and suburban living makes Belmont a top choice for those seeking an escape from the hustle and bustle of Boston. Aside from creature comforts, there are activities galore and excellent eateries within easy reach. 

Wellesley 

Wellesley, the fanciest suburb of Boston, is home to some of the most notable people in the world. It offers a stunning combination of historic sites and modern homes. It also has exceptional opportunities for higher education and ample access to activities like climbing, hiking, and running.

Winchester

This town has a timeless charm and a small community feel. It’s known to punch above its weight, so you’re sure to find top-rated schools, excellent public transportation networks, and restaurants offering a range of cuisines.

Size Matters 

The bigger your plan, the more time it will take to build even if you retain a small army of contractors. A single-family home, for instance, will take 7 to 12 months to complete while a bungalow can take up to 2 years.

Do a Feasibility Study Before Finalizing Your Budget

Investing in Boston luxury real estate requires solid planning, particularly if you’re building a home from the ground up. A feasibility study will help you understand the project’s viability, zoning regulations, and potential challenges so you can allocate your resources properly.

This can cost $20,000 to $50,000, but it’s important for minimizing risks.

Prioritize Eco-Friendly Homes

Sustainability is on the rise, to the point where residential buyers are willing to shell out 5% to 10% more on green buildings. 

When building your house, focus on Energy-Star appliances and lights, a high-performing HVAC system, insulated concrete forms (ICF), a passive solar design, polyisocyanurate roofing insulation, and WaterSense products.

These improvements will reduce utility bills while enhancing your quality of life.

Hiring a Designer Can Be a Game-Changer

The devil is in the details. That’s why you need to hire a designer or an architect who uses renderings. Beyond helping you customize your project, you can identify and address hidden complications while avoiding costly do-overs.

Some of the Best Architectural Styles for Boston

Here are some of the most notable architectural styles in Boston:

Brutalist 

Often criticized for appearing unfinished, Brutalist architecture in Boston balances the diverse landscape. It boasts concrete surfaces and a honeycomb-style facade.

City Hall is a fine example. You can also check out the Boston Architectural College, the New England Aquarium, and the Erich Lindemann Mental Health Center for a deeper appreciation of this aesthetic.

Colonial 

For multi-storied homes with a stately feel, the colonial style’s casement windows and large central chimneys rarely disappoint. Visit the Old Massachusetts State House and Paul Revere House to understand its nuances and how you can execute it in your own development.

Federalist

Federal-style architecture is known for its symmetry and balance. As its name suggests, it’s distinguished by elaborate doors, octagonal interiors, tall and slender columns, and decorative elements. 

Look at the State House, Sunflower Castle, and the William Hickling Prescott House for insights into this rendition of Georgian architecture. 

Greek Revival

Simple yet elegant, with grand symmetrical facades, and low-pitched gable roofs, Greek revival architecture has stood the test of time. The Custom House Tower, Nathan Appleton Residence, Quincy Market, and The Ether Dome are good examples of it.

Romanesque 

A rounded Roman arch is the defining feature of this architectural style. It is also characterized by massive walls that capably bear the heavy load of the structure. Visit the Ames Building, Liberty Hotel, or Trinity Church to see it in real life.

Victorian 

Victorian architecture encompasses a wide variety of styles that complement every aesthetic. It’s typically double- or triple-storied, with bay windows, intricately ornate gables, pointed arches, and steeply pitched roofs.

The Cyclorama at the Boston Center for the Arts is a fine example of a  Victorian building.

Breathe Life Into Your Boston Luxury Real Estate With Plus Render

From favorable capital gains to economic resilience, the Boston luxury market is attractive to savvy investors. Renders from 3D visualization firm, Plus Render, can help you explore your options and build the exact structure you want.Talk to us today for incredibly life-like and detailed digital models.