This May Be the Major Reason Why RI Real Estate Prices Continue to Skyrocket

Sunday, January 30, 2022 GoLocalProv News Team   View Larger + Cost to rent in Boston (pictured) may soon surpass San Francisco PHOTO: GoLocalProv Rhode Island’s economy has become more and more intertwined with Boston’s. Tens of thousands of Rhode Islanders now work in the Boston metro area. And, more […]

Sunday, January 30, 2022

 

View Larger +

Cost to rent in Boston (pictured) may soon surpass San Francisco PHOTO: GoLocalProv

Rhode Island’s economy has become more and more intertwined with Boston’s. Tens of thousands of Rhode Islanders now work in the Boston metro area. And, more and more Massachusetts residents are relocating to Rhode Island seeking less expensive real estate costs.

In December, Rhode Island’s real estate prices were up 15.3% over a year earlier.

Not only are the prices of homes skyrocketing, but also the prices of apartments – especially in more upscale apartments in Providence in which a one-bedroom unit can fetch $2,000 a month.

GET THE LATEST BREAKING NEWS HERE — SIGN UP FOR GOLOCAL FREE DAILY EBLAST

What is driving the multi-year increase in real estate in Rhode Island — look no further than the explosive increase in apartment prices in Boston.

The relatively less expensive Rhode Island is good news for the Rhode Islanders who work in Boston and are paid a Boston salary, but for Rhode Islanders living and working in Rhode Island, it just means a more expensive cost of living.

 

Boston May Soon Surpass San Francisco for the Price of an Apartment

San Franciso is ranked as the second most expensive city in the United States — second only to New York City.

According to the price tracking by the real estate website Zumper, San Francisco currently holds that title after falling behind New York in the summer of 2021. But San Francisco’s stagnant rent growth coupled with Boston’s dramatic rebound has the latter within striking distance of the former. In January, Boston’s median one-bedroom rent rose to $2,720, setting a new all-time high. San Francisco’s median one-bed rent is $2,850, putting Boston just $130 behind.

Boston apartment prices have jumped 26.5% year-over-year for a one bedroom and that is helping to drive the price increase in Providence — up 8.2% in the past 12 months.

 

View Larger +

GRAPH: Courtesy of Zumper

 

“It’s hard to overstate how astounding that is. In the winter of 2019, San Francisco’s median one-bedroom rent was $1,300 higher than Boston’s. But the pandemic disrupted rental patterns all over the country. Wealthy residents and young professionals left the city and prices went into free fall in both cities. Between March 2020 and January 2021, Boston’s median one-bed fell by 19.2 percent, while San Francisco’s fell by a staggering 23.4 percent,” reports Zumper.

Prior to the pandemic about 25,000 took the MBTA from Providence/Stoughton train into Boston daily — that number has decreased while workers were working from home.  But, that number is expected to rebound and potentially increase due to the number of workers from Massachusetts renting and now, new home buyers in Rhode Island.

 

View Larger +

GRAPH: Courtesy of Zumper

 

Further tying the two cities together are thousands of Rhode Island homes that have been purchased by Massachusetts residents.

Recent data indicates that 24% of all realtor-assisted property sales involved buyers from other states. In the luxury market comprised of properties sold for $1 million or more, 53% of sales are derived from out-of-state buyers.

“With the threat of climbing interest rates and rising rents, buyers are focused on securing a home with a steady mortgage payment to help stabilize expenses. They’re often competing with out-of-state buyers who are turning to Rhode Island because our market is still a bargain, even with the rise in prices that we’ve seen. The median single-family home price in Massachusetts last month was $520,000. Compare that to our median price of $375,000, add in the allure of coastal living and close proximity to Boston, and it’s easy to understand Rhode Island’s appeal. But, with the increased number of those buyers adding to the depletion of our housing inventory, there’s much work to be done to shore up our housing stock,” commented Del Borgo.

Video Wall PHOTO Scott Turner

 

  • RI Real Estate Continues to Rocket While Growing Concerns About Global Housing Bubble Emerge
  • Top Newport Realtor Talks About Her Bravo Reality Show and Dynamics of RI Real Estate Market
  • Warren’s Real Estate Renaissance: Mott & Chace’s Hollenbeck LIVE
  • Mott & Chace’s Rutley Not Seeing Real Estate Bubble Emerging – Here’s Why
  • New Real Estate Tool Allows You to Find Three Prices for the Value of Your Home
  • The Resurgence of Westerly: Mott & Chace’s Masterson on Red-Hot Southern RI Real Estate
  • “I Think We’re Going to See More Inventory” – Mott & Chace’s Taylor on RI Real Estate
  • Former Co-Owner of Real Estate One, Carl Walter Swanson, of Warwick, Dies at 82
  • Still Groundhog Day for RI’s Hot Real Estate Market: Mott & Chace’s Rutley on Inventory and Prices
  • Real Estate Broker & Developer, Anthony L. Santilli, of Narragansett, Dies at 86
  • Real Estate Agent John A. Paliotta Dies at 73
  • These Real Estate and Oil Tycoons Avoided Paying Taxes for Years – ProPublica
  • Highest Providence Real Estate Sale in 2 Years – East Side St. Florian Mansion Sells for $3.05M
  • The Arcade – Providence’s Most Unique Real Estate Buying Experience
  • Out-of-State Real Estate Buyers – 21 Who Made a Difference in 2021
  • Retired Real Estate Agent, Michael D. Jones, of Coventry, Dies at 55
  • Building Wealth Through Real Estate: Mott & Chace’s Masterson on Market Trends
  • Residential Properties Exceeds Record $1B in Real Estate Sales in 10 Months
  • Real Estate Broker, Consultant & Appraiser, Allen James Shers, Dies at 72
  • Mixed Indicators: Where Rhode Island Residential Real Estate Market Is Heading
  • Major New England Commercial Real Estate Deal Involves Tenants Lifespan and Care New England
  • Demolition on Gano—Is This The East Side’s Next Big Residential Real Estate Project?

 

Enjoy this post? Share it with others.


https://www.golocalprov.com/business/this-may-be-the-major-reason-why-ri-real-estate-price-continue-to-skyrocket

Christin Hakim

Next Post

Prisco's NFL 2022 AFC, NFC championship picks: 49ers still own Rams, Chiefs survive Bengals

Mon Jan 31 , 2022
My performance in the playoffs so far hasn’t been quite as bad as losing a game after being ahead with 13 seconds left. But it’s close to being as bad as the Bills blowing their lead to the Chiefs in that classic game last Sunday night. After a good regular season […]