Worcester Multifamily Real Estate Market Hotter Than Ever
If you’re looking to invest in multifamily properties in Massachusetts, it’s time to consider Worcester. Often outshined by Boston’s perennially booming real estate market, Worcester has been gaining prominence in the world of multifamily investing over the last few years. Even in the wake of the COVID-19 pandemic, multifamily properties are hot commodities across this Central Massachusetts city. To get in on the action, it pays to have all the help you can get. Boston City Properties is here to provide it with free access to our vast online database of searchable commercial real estate listings and more.
Prices are Up – But Inventory is Down
Multifamily housing across Central Massachusetts has been experiencing a renaissance of sorts for some time. In 2013, 163 multifamily properties were sold in Greater Worcester, totaling around $130 million. Five years later, in 2018, 226 multifamily properties changed hands; they were worth around $157 million total. Meanwhile, median prices for multifamily properties across Worcester County have been increasing steadily. In 2018, for example, the median value of a two-family property had increased by 38% versus 2013.
While prices for multifamily properties in Central MA continue to rise, inventory is still dwindling. Indeed, like any real estate boom, scarcity is driving up prices for multifamily housing across the state. This was once a problem reserved for Greater Boston; today, it is spreading across the state. It appears that many investors who have been priced out of Greater Boston are turning to Central Massachusetts – especially Worcester – for multifamily investment opportunities. This interest from outside investors has prompted prices to increase even more, and the trend has been intensifying. Again, however, inventory levels are exceedingly low. With more interested parties in the market than ever, it’s becoming harder than ever to find suitable options.
Get More Bang for Your Investment Buck in Worcester
Although prices are rising and availability is low across Greater Worcester, multifamily housing in this part of the state is still much more accessible for the majority of investors. For the same type of multifamily property in Worcester, you would typically need at least 50% more cash in Boston. A three-unit property in Boston costs anywhere from $1 million to $2.5 million; in Greater Worcester, a seven-unit property can be had for less than $400,000. For investors with limited resources, then, multifamily in Worcester is the way to go.
Huge Rental Market Presents Big Opportunities
Another reason investors are turning to Worcester for multifamily properties is that the region has one of the highest concentrations of renters in the state. In fact, according to recent reports, Worcester has the highest percentage of young apartment dwellers in Massachusetts; in 2020, 21% were members of Generation Z versus 13% in 2019. As the youngest generation continues to seek new rental homes, demand for multifamily housing across Central MA is sure to increase even more. Therefore, investors can rest assured of excellent occupancy rates for the foreseeable future.
Find Worcester Multifamily Properties with Boston City Properties
Thanks to the hot multifamily real estate market across Central Massachusetts, finding multifamily investment properties in Worcester is trickier than ever. However, investors who can snap up the best multifamily properties in the area stand to enjoy steady, increasing rental income for many years to come. If you want to invest in multifamily housing in Worcester, Boston City Properties can help. Sign up now to search our listings and see what is currently available. We can also refer you to a commercial real estate broker or agent in Worcester who can assist you further, so give us a call today.