Boston is said to the third most expensive city in the world. This impact is also visible on the rents of various apartments available there to rent. Other countries like San Francisco and New York are much costlier than Boston. But in terms of residential apartments for renting purpose, Boston has raised from other countries. Boston 3 bedroom apartments are more expensive. If a person goes with a well-furnished apartment with other facilities, then they have to raise their budget accordingly. It is due to a constant reason that is the domestic supply remains low in comparison to the demand for the apartments in Boston. Various steps were taken by the government and the builders of Boston to meet this demand. But these steps were like small ones that show no effect on the market.
● High barriers to entry
The sales market of the Boston region is considered to be one of the most expensive ones in the nation. So a huge number of people who might buy the area also prefer to take it on rent.
● Plenty of tenants
Due to excessive rent of the residential apartments, there are plenty of tenants who can afford places with such a massive amount of rents. Accordingly, 30 per cent of their income they spend on paying rent for survival with a roof on the head. Sometimes this reason became a drawback to the economy of the nation.
● Tight inventory.
Even there is a massive increase in the Boston-area construction apartment. Still, these constructions are not enough to satisfy the demands thereof. The inventory in the sales market is so tight that it is getting difficult for prospective buyers and tenants to jump in good deals.
● Perennially high demand.
The population of Boston is also a factor behind being an expensive city. The community is growing upwards from decades. As resources are limited demands are limitless, this directly shows a negative impact on fulfilling the need for residential apartments there. Increasing people demand places to stay, to start their survival which is getting tougher to match up with the demand of residences available there.
● Not enough new construction.
Land prices and construction cost are some factors which are becoming barriers in the new constructions for the living residences. Excessive land prices, labour cost, material availability and cost gives a direct impact which can be seen as less number of developments in Boston city. To meet up these, it becomes a task for the owner or the builder himself. So everyone prefers to stay quiet instead to take the risk of investing in new building projects.
● Horrible commutes.
Commuters prefer to set and settle their livelihood near their workplaces so that they can cut off the time of travelling from home to their workplaces. It is also an essential reason that apartments in Boston are becoming expensive day by day. Everyone sees their benefit first. All try to save much and spend less to match up with these people often try to get their residence at nearby places which simply raises the rents of the residential apartments.