The 10 BEST Cities in Massachusetts for Real Estate Investing

It’s no secret. The Real Estate Market is HOT right now. Listing prices are through the roof, sales prices are through the roof, and interest rates are still at a comfortable level for borrowing. When the Real Estate Market is HOT that usually means it is a ripe time to be an investor!

However, Massachusetts is historically high when it comes to home prices and this can be a pain in the butt for those looking to make their first move.

Massachusetts is Top 5 in the U.S. in Average Listing Price at ~$600,000

Massachusetts is Top 5 in the U.S. in Median Sales Price at ~$380,000

(Credit)

This doesn’t mean it is impossible to get into the game. You just need to think outside of the box and look at places that are considered “Up and Coming”. Cities like Boston, Somerville, Cambridge inflate these prices but there are plenty of others below the average and worth investing in!

My Criteria:

Average Sale Price – Acts as an entry into the market – we want below average prices

% of Population that Rents – Defines the market as either a renters area or a residential, family area – we want renters area

% Growth in Population – Shows growth and interest in the market – positive and big movements are a +

Median Gross Rents – Profits, profits, profits, that’s what it’s all about right?

(Data was received from Zillow and the US Census Bureau)

Here is my Top 10 List of Cities to Invest In:

*Keep in mind this for the Buy and Hold Strategy which means you are purchasing a home to rent it out. Flipping,wholesaling, etc are different strategies and would require different criteria.

haverhill10. Haverhill, MA

Average Sale Price – $298,000.00 (-21.58% below average)

% of Population that Rents – 40.00%

% Growth in Population (since 2010) – 3.30%

Median Gross Rents – $1,085

 

9. Revere, MArevere

Average Sale Price – $355,000.00 (-6.58% below average)

% of Population that Rents – 52.00%

% Growth in Population – 2.7%

Median Gross Rents – $1,227

8. Worcester, MAworcester

Average Sale Price – $226,900.00 (40.29% below average)

% of Population that Rents – 58.00%

% Growth in Population – 1.9%

Median Gross Rents – $975

7. Marlborough, MA marlborough.jpg

Average Sale Price – $335,000.00 (11.84% below average)

% of Population that Rents – 45.00%

% Growth in Population – 3.1%

Median Gross Rents – $1,245

6. Salem, MA IST-IS2176RM-00000028-001

Average Sale Price – $365,000.00 (3.95% below average)

% of Population that Rents – 53.00%

% Growth in Population – 4.3%

Median Gross Rents – $1,106

5. Lynn, MA lynn

Average Sale Price – $292,250.00 (23.09% below average)

% of Population that Rents – 56.00%

% Growth in Population – 2.6%

Median Gross Rents – $1,055

4.  Lowell, MA lowell

Average Sale Price – $240,000.00 (36.84% below average)

% of Population that Rents – 58.00%

% Growth in Population – 3.8%

Median Gross Rents – $1,041

3. Everett, MAMystic Generating Station, Everett MA

Average Sale Price – $380,000.00 (average)

% of Population that Rents – 60.00%

% Growth in Population – 11.2%

Median Gross Rents – $1,298

2. Lawrence, MA lawrence

Average Sale Price – $231,550.00 (39.07% below average)

% of Population that Rents – 72.00%

% Growth in Population – 5%

Median Gross Rents – $1,033

1. Chelsea, MA chelsea

Average Sale Price – $349,000.00 (8.16% below average)

% of Population that Rents – 74.00%

% Growth in Population – 12.90%

Median Gross Rents – $1,193

There you have it. The final results. Please keep in mind that I am not advocating any of the above cities over another. Every single situation should be handled differently and many other factors such as Safety, Public Schools, Transportation, Commute Time to Work, etc etc etc should be taken into account. The above list just helps narrow down “valuable” cities worthy of investing in, again, based on my selected criteria.

I hope this helps any investors out there looking to take their first steps and I hope you also found it interesting as a reader!

Cheers!

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