Photo via Boston Globe
Like it or not, many Boston neighborhoods that used to be relatively less desirable are skyrocketing in price. Knowing when to snap up property in a certain area before this happens is a valuable skill. So here’s the scoop.
NeighborhoodX devised a way to pinpoint the up-and-coming neighborhoods by comparing the ratios between rents and prices in different Boston neighborhoods. The higher the ratio, the more desirable the area because it indicates a demand for longer term housing.
Here are the specifics from NeighborhoodX co-founder:
- Purchase price per SF demonstrates the amount a person is willing to pay to own property in a neighborhood. So high purchase price indicates that area is desirable.
- Rent per SF shows the current conditions – what someone is willing to pay for one year. Higher rents imply that an area is more desirable now.
- So, it follows that the ration between the purchase price and annual rent indicates how many times the annual rent a person is willing to pay to own in a neighborhood.
High ratio neighborhoods include Beacon Hill, Back Bay and South End – shocking. The purchase price in Beacon Hill is 26.4 times the annual rent.
It’s important to note is that a lower ratio doesn’t mean a neighborhood is any better or worse than the next, just that it isn’t competitive in regard to housing.
So what are the new hot spots? According the ratios East Boston (13.8) Brighton (13.7) and Hyde Park (12.5) are the new up and comers.
Check out the full list:
- Beacon Hill – 26.42
- Back Bay – 23.30
- South End – 21.20
- South Boston - 17.40
- Jamaica Plain – 15.33
- East Boston – 13.74
- Brighton – 13.74
- Hyde Park – 12.55
- Dorchester – 12.43
- Roslindale – 11.57
- Roxbury – 11.57
- Mattapan – 10.47
*Click the town to see the latest properties for sale there