How Boston Compares Nationally—and What It Means for You

How Boston Compares Nationally—and What It Means for You

The real estate landscape is shifting—again. National headlines point to rising inventory, easing mortgage rates, and a slow-but-steady cooling in price appreciation. But Boston? It's still running hot. Whether you're planning to sell this summer or looking for an edge as a buyer, understanding how our local market stacks up against national trends is critical to making confident moves.

Key Takeaways:

• National inventory is rising—creating more options for buyers and softening price gains.

• Boston’s market remains hotter than the U.S. average, with faster price growth and fewer days on market.

• Suburban homes near Boston are booming, especially in commuter-friendly towns like Lexington and Winchester.

• Luxury buyers face fewer affordable options nationwide, but demand in Boston's luxury tier stays resilient.

• Now is a strategic time to list or prepare to buy, as shifting conditions bring fresh opportunities this summer.

Today’s Real Estate Headlines

• Suburban home affordability continues to collapse. Tight inventory, rising home prices, and near‑7% mortgage rates have pushed suburbs like Atlanta, Austin, and Denver well beyond traditional budget levels.

• Luxury housing priced out of reach in most U.S. cities. Only seven major metro areas—including industrial Midwest cities—still offer luxury homes (top 5%) under $1 million. Nationwide, luxury prices have surged ~88% in a decade.

• Rents are rising fast as the apartment oversupply fades. With fewer new units coming online, Zillow forecasts 2.8% rent increases for single-family homes and 1.6% for multi-family properties in 2025.

• Conditions have tilted in buyers’ favor. According to Compass CEO Robert Reffkin, listings are now at a five-year high, prices are slightly below late-2022 peaks, and mortgage rates have eased to ~6.9%, giving buyers improved leverage.

National Market Snapshot

Prices moderating:
Home‑price growth has slowed significantly. April 2025 saw just ~2% annual gains—the slowest since 2012. Experts expect 2025 appreciation to land between 2‑4%, down from last year's ~4.5%.

Inventory rising, affordability improving:
With supply rebounding to five‑year highs, buyers now have more options and negotiation power. Mortgage rate relief—expected to drop from ~6.9% to ~6.4–6.3% through 2025–26—further supports affordability.

Rent markets firming:
As homeownership becomes less affordable, renting remains attractive. However, fewer apartment completions mean rent growth of 5–10% annually is likely in coming years.

How Boston Measures Up

Boston remains scorching hot. Q1 2025 average home price hit $739K (+4.4% YoY), and properties are selling in just 33 days—ranking as the 9th hottest U.S. market.

May 2025:
Median sold price in Boston rose to $846K (+4.5%); prices per square foot reached $679, with especially strong gains in 3–4 bed homes (+8.8% to +10.3%).

Tight supply, massive demand:
Listing inventory remains extremely low across the Boston metro. Strong employment in finance, biotech, and tech keeps buyer appetite high—especially in walkable, transit-accessible areas.

Suburban strength:
Communities north of Boston—like Concord, Lexington, Lincoln, and Winchester—are showing solid price and sales growth as buyers look for commuter-friendly towns.

Policy spotlight:
Mayor Wu’s initiatives—such as rent stability efforts, office‑to‑residential conversions, and affordable housing programs—underline the city’s intent to tackle supply constraints, but actual inventory impact is gradual.

Takeaway for Sellers & Sellers-to-Be

• Sellers:

  • Boston remains a strong seller’s market, though price growth has cooled slightly.

  • Listing your home now ensures exposure to eager buyers; pricing competitively is key to generating multiple offers swiftly.

  • Suburban and luxury listings continue to draw attention—especially in high-demand niches.

• Buyers:

  • Inventory is still limited, but slightly improved—stay ready and consult with an agent.

  • Expect to pay premiums in Boston proper; consider hot suburban markets for better value.

  • Mortgage rates are forecasted to dip in the second half of 2025—serious buyers should lock in current rates.

Bottom Line: Boston vs. The Nation

Boston remains hotter than the national average—with faster price growth, shorter days on market, and fiercer competition. But signs of moderation and rising inventory suggest a gradual balance may be emerging.

What to Watch Next

• Mortgage rate trends—watch for dips below 6.5%.

• Policy shifts under Mayor Wu—especially office-to-residential conversions and rent stabilization.

• Suburban growth—key markets north of the city are attracting opportunity for both buyers and sellers.