Should You Invest in a Seaport District Condo?

Should You Invest in a Seaport District Condo?

  • Dylan Costello
  • 08/16/22

Like a phoenix rising from the ashes, Boston’s Seaport District is a fine example of how a community can reimagine itself. Over the past 20 years, Seaport, Boston, real estate has witnessed regrowth and a stunning transformation from vacant industrial buildings to a modern urban waterfront neighborhood replete with fine dining, boutiques, arts, culture, and gorgeous architecture. Today, Seaport condos for sale boast access to amenities, close connections to the city, and a charming neighborhood perfect for families, young professionals, retirees, and anyone looking for an urban paradise.
Whether you are looking to invest in Seaport, Boston, condos as your primary residence, vacation home, or investment property, there are many compelling reasons to buy Seaport, Boston, real estate now.

Strong local real estate market

As of June 2022, single-family homes in Boston reached a median sales price of $830,000, up from $810,000 in June 2021, with an average time on the market of just 23 days. Boston condo prices saw a similar increase, from the median price of $707,250 in June 2021 to $750,000 in June 2022.
In Seaport District and South Boston specifically, home prices as of May 2022 had risen 12.1% compared to 2021. The median home sales price was $920,000, and the average time on the market was 20 days – down from 29 last year.
While the pandemic-fueled buying frenzy has cooled somewhat nationwide, the local market remains strong. Inventory is still tight, which may pose a challenge for potential buyers unless they are prepared to act quickly when a desired property becomes available. Tight inventory and high demand are actually good news for those who are investing in Seaport real estate for rental property, as it drives rental unit demand, especially in sought-after luxury markets like the Seaport District. The existing strong real estate market, coupled with ongoing increases in inflation, is anticipated to continue to fuel strong investment returns for Seaport, Boston, real estate.

Post-pandemic economic recovery

Larger metro areas like Boston were hit hard during the pandemic, but the area has now recovered more than half of its lost jobs and is expected to recover completely within a year or so. Experts predict Boston to see a job growth of 4.7% in 2022. Boston businesses in the life science and tech industry are expected to recover more quickly, while healthcare and education will see continued exponential growth. Boston continues to attract new businesses, startups, and tech-industry companies, which equates to an increase in both the local economy and demand for housing.

A place to feel connected

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Thoughtful planning has created a place people want to call home in the Seaport District. With its network of pedestrian-friendly trails, the Seaport District is all about connection. The picturesque Harborwalk meanders through revamped industrial areas, lush green spaces, museums, shops, and restaurants. The bustling residential and commercial port also offers stunning views and, of course, some of the freshest seafood you will find.
Whether you want to take home the catch of the day to fix at home or tuck into a steaming bowl of creamy New England clam chowder at one of its iconic restaurants, Seaport condos for sale offer the best of coastal living. Close access to the lively Boston Common or peaceful Boston Gardens gives residents a lush respite from daily stress. History buffs will marvel at the area’s rich stories, culture, and architectural heritage while boating enthusiasts can set sail from the harbor and feel the salty air on their faces. There’s no question the Seaport District has a lot to offer residents and investors alike.

Investment in infrastructure

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With one of the fastest growing populations in the Boston area, the Seaport District planners have a committed focus on investing in infrastructure. By 2030, the area is expected to serve as the second-largest employment district in Boston. By that year, the district’s population is estimated to top 31,000. Additional public transportation, access, and other resources are in the works to meet the needs of the area’s burgeoning population. Plans include a wide range of expansions, including local and crosstown connections, water taxis and ferries, bike and pedestrian paths and lanes, street improvements, and other multimodal options.

Real estate as a hedge to inflation

Record-breaking inflation rates have people on edge. As the power of the dollar decreases, more and more investors are seeking inflation-hedging returns to protect their buying power. Traditionally, a 2% inflation rate is seen as the target rate for a healthy economy, but current rates are hovering near 9%.
One of the simplest ways to see better returns in an inflationary market is through fixed-rate mortgages. In a rising interest rate environment, fixed lower mortgage rates help homeowners build equity with some protection from inflation. Income-producing rental property is another excellent investment option in an inflationary market. Rental income typically keeps pace with inflation, and that has persisted with rents skyrocketing nationwide. Savvy investors who purchase property with fixed-rate mortgages or cash should expect the gap between their investment and income to widen as inflation rises. Of course, as with any investment, potential buyers should consult their investment advisor and evaluate their personal investment goals before proceeding with any significant real estate purchases.

Interest rates aren’t going down any time soon

Faced with the highest inflation rate in four decades, the Federal Reserve recently increased the federal funds rate by 75 basis points, with another rise expected next month and possibly more on the horizon as the year wears on. The 75 basis point hike is on the heels of a 50 basis point increase in May and is the most significant jump seen since 1994. Essentially, it’s not getting any cheaper to finance real estate. The sooner investors or future home buyers act to purchase property, the less it will cost to finance the investment. Economists predict ongoing rate hikes to continue well into 2023, so if you are looking for Seaport condos for sale, time is of the essence.

Ready to learn more?

When you are ready to research your options for investing in Seaport, Boston, condos for sale or other gorgeous properties in Seaport, Boston, real estate, don’t hesitate to reach out to experienced real estate professional Dylan Costello of the Dylan Costello Team for expert guidance. Dylan Costello is proficient in navigating the Seaport real estate market and has the skills and savvy needed to help you find your next dream home.

*Header photo courtesy of Unsplash

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Dylan has a reputation for being personable, honest & putting together creative deals. Motivated by relationships, Dylan got into Real Estate to help people. Dylan offers a warm and friendly approach and loves to help people Buy or Sell their homes.

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