I remember when nearly 4 years ago to this day, Cathay Pacific announced it’s first direct flights from Hong Kong to Boston. In that year, over 10 direct routes to Boston that were previously unserviced, were added from various major international cities. We cited this as a positive trend showcasing that Boston’s real estate momentum was based on sound principles of the city becoming more connected to the global market. And as such, pricing would be compared to what’s available globally, both then and more so in the future.
At that time, $2000+/ft was the top of the market, reserved for only the most venerable homes in Boston, and median prices well below $1000/ft for the hottest neighborhoods. Now, Boston’s median PPSF is a great deal higher and the ceiling has been raised to the $4000-5000/foot mark.
Many people have asked me, “When is Boston’s real estate bubble going to pop?” Bubbles are based on single (or a few) unsound variables that are propping up/propelling a market beyond ‘boom growth’ (e.g. San Francisco’s market is being driven primarily by the tech industry). Should those companies move out of the city overnight, and going with them the HIGHLY paid employees, would San Francisco prices be sustainable? Unlikely.
Becoming a global destination, both for investment as well as leisure, is a pretty sound basis for growth. One of the many reasons I feel Boston will remain a desirable city for investment. Do you feel that this aspect of Boston’s growth is over-inflated?