5 Boston-Area Real Estate Markets to Watch in 2021

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Boston is a city rich with history dating back to the American Revolution. It’s also home to some of the most prestigious universities and well-regarded hospitals in the world. With schools such as Harvard and MIT nearby, some call its tech scene the Silicon Valley of the East Coast. Equally noteworthy is its booming pharmaceutical industry, which includes Moderna, best known for its COVID-19 vaccine.

As in much of the country, the pandemic changed things in Boston. Many who realized they would be working from home indefinitely decided to move to the suburbs—and the pandemic has barely dented the increase in property prices in many of the surrounding cities. There are plenty of real estate opportunities around this popular city, but there are five spots in particular that every attentive real estate investor should know about. 

Chelsea

Located just north of Boston, Chelsea is the second-most densely populated city in the entirety of Massachusetts. Approximately 40,000 people now live in the 2.4-square-mile city. That’s a growth of 14.4% since 2010. What’s the draw? 

After facing hardship in the 1990s, the city recovered well and now enjoys sustained economic growth. Centrally located for commuters and frequent fliers, thanks to Logan Airport just 15 minutes away, it’s the perfect location for professionals and those seeking economic opportunity.

Things look good within the city, too. With such a compact footprint, everything you need is on your doorstep. When you need to head further afield, public transport is good, with trains and buses taking you wherever you need to go. For going even further, Route 1 runs along the city’s edge, which makes for a fast exit. 

The Mystic River wraps around Chelsea, providing a prime opportunity for desirable waterfront property. This is especially true to the southeast, where the river divides Chelsea from East Boston (where property prices are also on a sharp incline). 

Between 2005 and 2013, over 1,200 new homes were built to support the growing population, and property prices have risen significantly since.

Property prices 

The median price of single-family homes in Chelsea was $310,000 in 2015, and this has grown to $480,000 today. Despite the difficulties of 2020, home prices continued to appreciate at 9.6% and show no signs of slowing down.

The condo market is also strong and rapidly appreciating. In 2015, the median price was $240,000. That number grew to $387,000 at the start of 2020. Growth for all real estate in Chelsea is expected to increase by 7.7% in 2021. 

Thirty years ago, Chelsea was a relatively low-income area, but that is certainly changing. The median rent in the U.S. in 2020 was $1,468 a month. In Chelsea, like other cities on the East Coast, the rent is much higher than that: In 2020, the median rent was $2,830, up from $2,215 in 2017. This is an increase of 27.8% in just three years. Certainly a statistic to note, and one that makes Chelsea an attractive prospect.

Everett

To the west of Chelsea is Everett, where big changes have been happening. This has largely been spurred by the construction of the Encore Boston Harbor casino, which opened its doors for the first time just last year. Economists believe it has generated $1.6 billion in economic activity. 

Although the influx of cash from the casino has been average at best during the COVID-19 pandemic, the population has been growing steadily year on year. Currently, 48,000 people call the city home, which is a growth of 15.6% from 2010. This is thanks to its close proximity to Boston and other emerging cities such as Somerville and Malden.

Everett benefits from a short commute to downtown Boston, access to public transport, easy access to sporting events, and a 20-minute drive to Logan Airport. Head across the Mystic River to Somerville, where residents can take advantage of the popular Assembly Row outdoor shopping center.

Property prices 

Housing prices have climbed fast in Everett. In 2015, the median single-family home value was $327,000. In the last year, that has increased to $527,000, and the market has grown by 9%. 

Condos are also seeing significant growth. In 2015, condo prices averaged $230,000; they’re now valued at $347,000. Condo prices rose sharply between 2018 and 2019, before leveling off  in early 2020. They are now steadily climbing again and appreciated by 9.3% in 2020. 

All real estate in Everett is set to increase by another 11.1% in 2021. This shows significant growth and is certainly exciting for anyone looking to invest in the area. Prices in Everett have been increasing since 2012, so the growth is stable. 

Despite the fast growth in Everett’s property prices, the rental market has not seen much growth, unlike neighboring Chelsea. The median rent in Everett is around $2,400 for two bedrooms. 

Revere

Revere benefits from being a coastal city close to downtown Boston—just five miles away. Originally called North Chelsea, it was renamed in 1871 after the Revolutionary War figure Paul Revere. For those seeking a different lifestyle while staying close to the city, Revere is the perfect place to call home. 

The city’s population is currently 53,000, an increase of 4.5% since 2010. Revere benefits from waterfront properties, with a sandy beach and stunning views in the summer. After a walk on the beach, Revere residents can easily hop on public transport and be in downtown Boston. 

Like Chelsea, it benefits from its neighbor East Boston, where the real estate market is booming, and of course, Logan Airport. 

Property prices 

Property prices in Revere are on a steady incline and have been since 2012. In 2015, the median single-family home value was $327,000, while this year the median value reached $516,000. In 2020, the property market has grown by 9.2%. 

Condo values in Revere are just as good as, if not stronger than, single-family homes. Revere condos have increased in value reliably over the past five years. In 2015, the median value was $256,000, while prices reached $375,000 by the end of 2020. In 2020 alone, they experienced a healthy 9.5% increase in appreciation.  

All real estate in Revere is projected to increase by another 10.3% in 2021. Revere is definitely a good market to invest in, especially because the property values have held firm since 2012, with very little downward movement.  

Likely due to being slightly further away from Boston, the average rent is lower than in some of the closer cities. The median rent in 2020 was around $2,270 a month. 

Salem

Salem is famous for its 17th century witch trials and modern position as a mecca for lovers of all things spooky. Of course, one of Salem’s strongest points is its high tourism rates, which keep the economy healthy. There’s tourism, there are always plenty of places to eat, and there’s now an emerging foodie scene that will only add to the area’s economic health. 

The population has grown by 6.1% since 2010 and now sits at around 44,000 permanent residents. Salem sees about 1 million visitors annually in a normal year, which generates $140 million for the town and supports over 1,000 jobs. Salem State University bolsters this further, providing a constant flow of tenants for landlords. This makes it a reliable place to invest, regardless of your preferred model, though it is particularly desirable in the long- and short-term rental markets. 

While a little further from downtown Boston, public transport is good and the 107 bus can take you right into downtown in around 40 minutes. The area benefits from oceanfront properties, conservation areas, and a small-town feel. 

Property prices 

Salem single-family homes are increasing in value quickly; the average price has increased by $47,000 since March alone. This is likely due to the aforementioned trend of professionals moving out of the city. March marked the start of the COVID-19 pandemic and ensuing working from home, and Salem offers a better quality of life while still being close enough to get to the office within a reasonable timeframe. 

Salem’s median single-family property value in 2015 was $353,000, rising to $504,000 in 2020. In 2020 alone, single-family dwellings have experienced a 9.1% increase, with a notable increase since March.  

Condo values in Salem are also increasing. The median condo value in 2015 was $270,000. In 2020, that rose to $375,000. Condos have experienced a 9.3% increase over the course of 2020. 

All real estate in Salem is projected to increase by another 9.9% in 2021.The median rent in Salem is around $2,300 per month, which is increasing by about 0.7% each year. With such a strong economy and increasing desirability as many professionals continue to work from home, investing in Salem seems like an extremely safe choice. 

Randolph

Looking to the south of Boston, Randolph sits in Norfolk County, around 17 miles from Boston, and offers a mingling of urban and suburban life. Just a 30-minute drive from downtown with commuter rail and bus lines are also available, Randolph has an abundance of nature, restaurants, and other amenities. 

It’s the kind of place where you actually get to know your neighbors, and there’s a strong sense of community for the 34,000 diverse residents. It’s an extremely desirable choice for professionals looking for a place to start a family within a 30-40-minute commute from downtown. 

Randolph is more affordable than many of its neighbors, including Braintree, Quincy, and Milton, but its growing popularity means this may change in the future. 

Property prices 

As in the other cities on this list, property values in Randolph are rising. Single-family homes have risen from a median of $299,000 in 2015 to $431,000 in 2020. Like Salem, Randolph has seen an increase in house prices of around $33,000 since March. In 2020 alone, they’ve appreciated in value by 9.1%.

Condo values are also rising. The median condo value in 2015 was $197,000. At the end of 2020, that value increased to $298,000. Condos in Randolph have experienced a 9.4% increase over the course of 2020. 

The median rent in Randolph is approximately $1,980 per month. Additionally, Randolph real estate is projected to increase another 11.2% over the coming 12 months; the proximity to Boston will continue to help it hold strong as people leave overpriced urban areas in droves. 

All five of these locations have seen at least a 9% appreciation in value over the past year, and all are projected to do the same next year. With so many people continuing to work from home for the foreseeable future (if not for good), many are choosing to move further afield for a better quality of life. 

Which Boston-area market do you think shows the most promise?

Tell us in the comments below.

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.