Boston

MAGreater Boston

Real Estate Market Analysis

Q3 2025 Report
$842,218 (June 2025)
Median Home Price
~650,000 (city), ~4.9 million (metro area)
Population
$89,212 (Boston city, 2024 est.)
Median Income
Boston Public Schools: mixed (average rating 5/10), top suburbs 8-10/10
School District Rating

Market Overview

Property Values

$842,218 (June 2025)
Median Home Price
$681 (June 2025)
Price per Sq Ft
+4% year-over-year (June 2025)
YoY Change

Market Performance

Days on Market33 days (Q1 2025 avg)
Market TypeSeller's market, but pressure easing slightly
Months of Supply~2.7 months (2,726 homes for sale in June 2025)

Sales Activity

Sales Volume2,726 homes for sale in June 2025 (+4.6% MoM)
Metro AreaGreater Boston
Population~650,000 (city), ~4.9 million (metro area)

Economic Indicators

Employment & Growth

Unemployment Rate~3.0% (Greater Boston, 2025 est.)
Job Growth Rate~1.2% (2025 est.)
Median Household Income$89,212 (Boston city, 2024 est.)

Major Employers

  • Mass General Brigham
  • Harvard University
  • MIT
  • Amazon
  • Salesforce
  • Boston University
  • State Street
  • Fidelity Investments

Demographics

~650,000 (city), ~4.9 million (metro area)
Population
32.5 years (city)
Median Age
Stable, slight increase (~0.5% YoY)
Population Growth
54% bachelor's degree or higher (city)
Education Level

Family Composition

~35% families with children, strong young professional and student presence

Key Industries

HealthcareEducationBiotech/PharmaFinancial ServicesTechnology

Education

School District

Boston Public Schools: mixed (average rating 5/10), top suburbs 8-10/10
District Rating

Top Schools

  • Boston Latin School
  • Boston Latin Academy
  • John D. O'Bryant School of Math & Science

Higher Education

  • Harvard University
  • MIT
  • Boston University
  • Northeastern University
  • Tufts University

Infrastructure & Development

Major Projects

  • Conversion of underutilized office space to residential units
  • Major waterfront redevelopment (Seaport, East Boston)
  • MBTA Green Line Extension

Transportation

  • MBTA modernization and expansion
  • Bike lane and pedestrian improvements
  • Logan Airport upgrades

Planned Developments

  • Mixed-use projects in Allston, South Boston, and Dorchester
  • Affordable housing initiatives

Lifestyle & Amenities

Recreation

  • Charles River Esplanade
  • Boston Common & Public Garden
  • Proximity to Cape Cod, ski areas

Dining & Entertainment

  • North End dining
  • Seaport nightlife
  • Fenway/Kenmore bars

Cultural Attractions

  • Museum of Fine Arts
  • Boston Symphony Orchestra
  • Historic Freedom Trail

Investment Analysis

Investment Opportunities

  • Strong rental demand from students and professionals
  • Potential appreciation in neighborhoods near new developments
  • Conversion of commercial to residential units

Growth Outlook

Measured optimism; moderate price growth expected, inventory slowly increasing

Market Risks

  • Affordability constraints limiting buyer pool
  • Rising mortgage rates (7.1% as of 2025)
  • Potential for softening in luxury segment

Rental Market

Strong, with high demand and low vacancy in core neighborhoods

Marketing Intelligence

Target Demographics

  • Young professionals
  • Medical/academic staff
  • Investors
  • Families seeking top schools

Marketing Channels

  • Zillow, Redfin, Realtor.com
  • Social media (Instagram, Facebook)
  • University and hospital networks

Pricing Strategies

Price at or slightly below recent comps to drive competition; adjust quickly if no offers in 2-3 weeks

Common Objections & Response Strategies

Objection: Homes are too expensive for my budget.

Response Strategy:

Highlight lower-priced neighborhoods, down payment assistance, and potential for future appreciation.

Objection: Mortgage rates are too high.

Response Strategy:

Discuss rate buydowns, adjustable-rate options, and the potential to refinance when rates drop.

Objection: Competition from cash buyers makes it hard to win.

Response Strategy:

Advise on strong offer terms, escalation clauses, and personal buyer letters.

Professional Recommendations

1

Educate buyers on rate buydowns and creative financing.

2

Price listings strategically and adjust quickly if market shifts.

3

Leverage digital marketing and professional staging for maximum exposure.

4

Target neighborhoods with upcoming infrastructure or university expansions.

5

Stay informed on zoning and development changes impacting inventory.

Competitive Analysis

Comparable Markets

  • San Francisco
  • New York City
  • Washington, DC

Market Positioning

Premium, knowledge-economy city with global appeal and resilient demand

Competitive Advantages

  • World-class universities and hospitals
  • Strong tech and biotech sectors
  • Historic neighborhoods with high walkability

Price Comparison

Boston is less expensive than NYC/SF but pricier than DC and most other East Coast metros

Investment Metrics

3.8%–4.5% (core neighborhoods, 2025)
Cap Rates
4.2%–5.1% (multi-family, 2025)
Rental Yields
~23 (citywide avg, 2025)
Price-to-Rent
Positive in select neighborhoods with high rental demand; tight margins in luxury/prime areas
Cash Flow
3%–5% annual growth expected through 2026
Appreciation

Buyer Journey Insights

First-Time Buyers

Face affordability and rate challenges; benefit from down payment programs and targeting emerging neighborhoods.

Move-Up Buyers

Often leverage equity; seek more space or better schools, but must act quickly in competitive segments.

Downsizers

Prioritize walkability, amenities, and low-maintenance living; strong demand for condos and townhomes.

Investors

Focus on rental yield and proximity to universities/hospitals; value-add and conversion opportunities present.

Relocators

Attracted by job opportunities and city amenities; often need flexible closing and relocation support.

This city analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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