Is Boston in Another Real Estate Bubble?

Posted by Nick Warren on Friday, December 1st, 2017 at 2:28pm.

UBS Global Real Estate Bubble
 
Perhaps the question we are asked most by our clients is if we think we are in or headed towards, another housing bubble.  Besides anecdotal evidence, it can sometimes be tough to give a clear and confident answer.  
 
The link below is to an article summarizing the findings of the UBS Global Real Estate Bubble Index.  It showcases major cities throughout the world, including Boston, and sorts them into four categories: bubble risk, overvalued, fair-valued, and undervalued.  
 
Highlights:
 
  • Fair-Valued:  Surprisingly, Boston ranks as one of only four "fair-valued" cities, even with what we often feel is a hot market that sometimes borders on out-of-control.
  • Price to Income:  4 years = The number of years a skilled service worker needs to work to be able to buy a 650 sq. ft. condo near the center of Boston.  This ranks Boston as the second lowest which makes us very attractive.
  • Price to Rent:  16 years = The number of years a Boston condo of the same size needs to be rented to pay for it.  This ranks us as second lowest, which is very attractive to investors looking for solid returns.
I encourage you to click the link below and read the full article.
 

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