Posted on Jan. 15th, 2015
Before the year 2014 finally came to an end, an online residential real estate site Trulia, which lists for rent and for sale properties in Massachusetts, has revealed their perception about the top ten housing markets to watch out for in 2015. First on their rank was Boston that came ahead of Dallas Texas, Fresno California, Middlesex County Massachusetts, Nashville Tennessee, New York City, Raleigh North Carolina, Salt Lake City Utah, San Diego California and Seattle Washington.
Each of this ten real estate markets display firm fundamentals for housing activity with Boston being difficult to beat. Washington was left out of the list since its job growth has been recently sluggish. San Francisco did not make it on the list as well since Trulia believes that houses in San Francisco are overvalued by 12%. Boston is currently thriving in home sales, most especially in their luxury condo market. Along with this thriving house market is a solid economy, giving it no question as to why Boston made it to the top for quality house markets in America. There are no distressed sales and all-cash sales continue below the federal average.
The three major factors in which Trulia consider which led the superiority of Boston include job growth, low vacancies and tough presence of the millennial generations.
• Job Growth: According to Forbes, since June of last year, unemployment rate in the area of Boston has dropped down from 19% to only 6.3 % of the workforce whilst job growth is seen to be 1.7 % this year. Moreover, high technology employment growth in Boston is 4.7% and the college attainment is very good at 41.1%.
• Low Vacancies: Reis reported in accordance to their 3rd quarter apartment trend that the multifamily vacancy rate in Boston was only 4.2%, while the single-family section of the market, months-supply stays low at only 3.5%. With such low figures, Trulia pinpoints they mean one thing to the demand scale in the Boston market – additional construction activity that will bring Boston real estate among the top ten in the nation.
• Tough Presence of Millennia Generations: Ultimately, Boston stays a great source of activity for the millennial generation of the nation that will shape housing future more than anyone else. In regards to the analysis done by Redfin following the zip code 02127 of Boston, millennial generations in the area is composed of 31% of their overall population. In a separate study conducted by Niche, it ranked Boston as the 6th best city across the nation in terms of millennial generations.
Going along with these 3 factors is the rich history of Boston, luxurious and quaint living, impressive schools and high-end hospitals, making it vividly uncontrollable that such great city be over shined by others real estate cities in 2015. Being said, it is not impossible that Trulia ranked Boston really high. However, aside from Boston, let us as well keep an eye on the other cities since we can never know they are already developing some big time strategies to change the ranking of Boston.