Building Costs Per Square Foot in the City of Boston (MA), USA

Residential Construction Market Analysis in the City of Boston, USA

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Building costs are 37% above the national average in the City of Boston in Massachusetts. It always seems that the old days were better, especially when it comes to buying property. When we look at the values of houses in the past, it is very easy to fall into thinking that it was possible before and now it is not.

However, there are always properties available on the market, or unique opportunities that help us fulfill the dream of having our own property. In this article, we will delve into the world of the real estate market in Boston, Massachusetts.

In this way, you will be able to know if this city is the perfect one for you, whether to buy a property or invest in the real estate market. From the construction outlook to an analysis of the real estate market, with all the values included and exclusive information on the residential construction projects that are coming this year, here you will find all the information you need.

Boston Construction Outlook

Boston is known as “the city of neighborhoods” as it has 21 neighborhoods with a very diverse composition. From neighborhoods that could be considered a big city like Charlestown, to luxury neighborhoods like Beacon Hill and cheaper ones like Grove Hall.

This variety in values ​​makes Boston’s construction outlook very varied as well. If you want to see skyscrapers or tall buildings then you should go to the financial district. In the vicinity of Harvard, you can find quite elegant condominiums and other smaller buildings where researchers or university students usually live.

If you go to the outskirts of the city you can find residential neighborhoods, with the typical single-family homes with 3 bedrooms, a garage, and a small garden. Most of the houses that belong to middle-class families do not have a super large garden, and they are not usually surrounded by nature as is the case in other cities.

Boston is the capital of Massachusetts, and it has 80% of the population of the entire state, so there are always a lot of people everywhere. Practically no town is small or deserted, so it is perfect for people who are social or want to feel accompanied all the time.

Boston Housing Market Analysis and Forecast

Although property values ​​in Boston are quite high compared to the national average, there was still a dip in prices when compared to the trend at other times of the year.

As winter approaches, you can expect prices to continue to drop a bit, then rise again in the spring and summer of 2023. This is a trend that often occurs across the country, but especially in Boston.

The average value of a property during the summer months is usually up to 10% higher than in the winter months in Boston, so if you decide to move to this city, you should wait until it is winter or autumn.

For the same reason, if you are a seller, it is also convenient for you to sell a property during the summer since prices are higher and so will your profit. In summer, an average of 800 properties are usually sold, while in winter that average drops to 400.

During the winter months, houses take up to 30 days to sell on average, while in summer the average is 20 days. In any case, it is a pretty good number, especially when compared to the national average.

Boston Average House Price (Median Home Price)

In October 2022, the values ​​of the median home in Boston are $740,000. It is expected that there will be a drop during December, and the first months of 2023, reaching down to $700,000.

Remember that the median home is usually a value made based on the value of single-family properties, so it can vary depending on the type of property and the area where you are.

There are 2 room apartments in Boston that cost between $300,000 and $400,000, although, of course, you can find cheaper ones if they are from old or historic buildings in the city (they are usually cheaper because you cannot make modifications due to city laws).

In the city of Charlestown, you will find average prices of $999,000, which at any time will exceed one million dollars according to the opinions of experts in the field. The cheapest neighborhood where you can find a single-family home is Grove Hall, with an average of just over $480,000. In Beacon Hill, the median price exceeds $2M, and is considered a neighborhood for tycoons, celebrities, or the richest people in the state without a doubt.

Proposed Residential Building Projects in Boston

Boston is a city that is constantly growing, and there are no signs that this is going to stop anytime soon. In fact, some specialists believe that if this growth continues steadily, then Boston could become a city of the same magnitude as NYC. Of course, we can’t see the future, but the residential construction market is indeed growing right now.

For that very reason, there are always new residential construction projects throughout the city. Do not forget that Boston concentrates 80% of the population of Massachusetts, so with that number of people it is already more than enough to have a constant demand for all types of residential construction.

Building projects are the true protagonists of recent years. In the commercial district of Boston you can find different lots where large skyscrapers will be built, and others that are already under construction. Apartments of all kinds will be built in them, some mix offices (or studios) and residential homes, while others are entirely residential. They are usually apartments with 1 to 4 rooms, so there is a variety for all tastes and needs.

In Beacon Hill, there are some luxury houses under construction. In fact, there is a very famous construction company that is in charge of building a large number of luxury houses, and recently bought a large number of lots in Beacon Hill, so it is believed that many mansions or luxurious houses will be built soon.

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Building Costs Per Square Foot for Single Family Homes in the City of Boston (MA), USA

Building costs are 37% above the national average in the City of Boston in Massachusetts.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Boston City ranges from $472.50 per sqft to $724.32 per sqft, with the average being $557.62 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Boston City ranges from $287.17 per sqft to $440.18 per sqft, with the average being $338.88 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Boston City ranges from $185.64 per sqft to $281.96 per sqft, with the average being $217.34 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Boston City ranges from $135.48 per sqft to $207.76 per sqft, with the average being $159.89 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Boston City ranges from $109.97 per sqft to $168.41 per sqft, with the average being $129.67 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Boston City ranges from $86.73 per sqft to $132.94 per sqft, with the average being $102.32 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.