Cost of City Living Pushing Many Buyers to Metro West Suburbia

Following the housing crash of The Great Recession, many people started returning to urban areas, given the newly available housing. Since then, the cost of living in Boston has been on a rapid incline as luxury condominiums and international investors bought up much of the landscape, pushing new buyers back to the suburbs.

Millennials at a median age of 30 are now dominating the homebuyers’ market. With an average single-family home income estimated at $77,400, there is the necessity of qualifying for a mortgage with a dual income portfolio. According to Zillow, Boston home values have gone up 11.2% over the past year and are predicted to rise 4.4% this next year. The median list price per square foot in Boston is $645, while the median price of homes currently listed in Boston is $698,000.

Metro-West towns such as Needham, Sudbury and Natick offer more financial opportunity when your budget is in the $650,000 to $750,000 price range. These communities are experiencing a surge of activity from millennial buyers.

In fact, Mic.com found that city living costs residents $7,600 more than those in the suburbs, in annual mortgage and property tax payments. Despite their hefty price tags, homes in Boston are significantly smaller in terms of living space with approximately 400 square feet less than a home purchased outside the city.

The cost of owning in Boston hasn’t reduced the appeal of short commutes and an exciting social life. Instead, it has caused many young professionals to rent, living in small spaces with multiple roommates to afford their urban way of life with little left over to save. The financial burden of renting is beginning to weigh heavy on the wallets of 20-somethings. Due to lack of market inventory in the city, already high rent prices are on the rise by 6% to 7% each year – even if income growth isn’t.

When it comes time to buy a home and lay a foundation for the future, consumers aren’t willing to sacrifice as much. Instead, homebuyers are finding their compromise in our Metro West neighborhoods like, Wellesley, Weston or Needham. These self-proclaimed, “suburbs of Boston” offer less than a 20-mile commute and have access to public transportation on those snowy January Mondays.

When making this shift to Metro West suburbia, you’ll need the advice of a seasoned professional who can match your specific needs to one of these Boston suburbs. Take Weston, for example, located only about 17 miles outside of Boston, its suburban vibe makes it feel a world’s away from the Hub. As for the concerns of parenthood, Wellesley offers an amazing school district, a safe community and much quieter Sunday mornings.

The Generation Y we have characterized as single, city-dwelling young professionals, will inevitability begin to settle down as they age into their 30’s. In a report by Bentley University, Sarah House, an economist at Wells Fargo, reports, “With 4.3 million millennials turning 30 this year, there will soon be more adults in their early 30s than at any other time in U.S. history, according to an analysis of U.S. Census data.” This means an influx of buyers looking for their forever home in suburbia where backyards exist.