Worcester Multi-Family Real Estate Blog

A recent statistic from Banker & Tradesman caught my attention, highlighting a growing concern in the housing market. According to Zoocasa, the annual median income in Greater Boston has increased by 22.4 percent since 2018, yet in that same period, the average monthly mortgage payment has jumped by 27.5 percent. The disparity is even more alarming in Worcester, where median income has grown by 19.7 percent, while mortgage payments have surged a staggering 82.9 percent. Impac

People often ask me why I choose to buy investment properties and other real estate. The answer is simple: Understanding the Value of Time Labor is finite. We can only work in the present, and once that time is gone, it's gone for good. If you take a day off and don't earn, that day will never return, and neither will the money you could have made. We all have a limited amount of time to work, and there's a constant push to maximize that time to earn as much as possible---so

We are all aware that the GSE's Fannie Mae and Freddie Mac buy a large share of mortgages. This is believed to help put liquidity into the home buying process by taking these loans off the books of banks and mtg companies. Freddie Mac's Purchase of 2nd Mortgages Now Freddie has started to purchase 2nd mortgages. There are some guidelines in place that limit the total exposure to 80% LTV which is good. This probably provides an adequate level of protection for Freddie. The Con

You hear these numbers about cash home purchases. This one jumped out to me. In April of 2024, 64% of homes sold in Manhattan were paid for entirely in cash. We know that cash is king, but that is a big kingdom. Where does all the money come from? Yes, there are a lot of people who spend less than they make and have a surplus. There are others who are inheriting wealth from others. But there is another subset that we often forget: those who have equity in their homes. Much of

In November 2023, Fannie Mae introduced a new policy allowing owner-occupant loans on 2-4 family homes with just 5% down, a significant change from the previous requirement of a minimum 15% down payment. One might think this would help first-time owner-occupant homebuyers enter the housing market. Unfortunately, it has also served to prop up the housing market just when it was about to slow down. Before this, the only multifamily low-down payment program available was the FHA

Do a Google search for "Boommates" and you'll find references to the Golden Girls TV show and discussions about two significant issues older people face: the high cost of housing and loneliness. For younger people, we call this "house hacking," where someone buys a house and takes in roommates to help cover the costs. Most hope this is a temporary situation, expecting eventually to have their own spaces for themselves and their families. However, few realize that the high cos

Let's start with a few notable facts: Notable Facts 26% of all renters in Worcester and 17% of residents citywide don't own or have access to a private automobile. In downtown Worcester, 41% of renters and 38% of all residents don't have access to a private vehicle. Buses in Worcester became fare-free in 2020 and are currently slated to remain that way through June 2025. It's challenging to charge an electric car if you live on the third floor of a triple-decker and don't hav

Antonia Noori Farzan recently wrote a wonderful article in the Providence Journal about rooming houses. Though my real estate business focuses on multifamily housing, this topic resonates deeply with me. I remember talking to my father about why he lived at home after graduating from college in the 1950s. He explained that back then, the options were simple: you either lived at home, got married, or lived in a house owned by someone else. Single men didn't rent apartments for

This may seem like a surprising topic when you think about Worcester. After all, building in Worcester is challenging due to limited land availability. Unlike cities like Phoenix or Las Vegas, where there is ample undeveloped land, Worcester's development must work within existing constraints. Currently, some of my clients are effectively participating in Build to Rent by default. They purchase properties, rehab, or build with the hope of increasing the value, and then find t

There is a lot of talk of the Worcester Rental Property Registry right now and there have been many public meetings trying to figure out how it will work and if it is legal. Click here to know what is going on and what is going to be required. The list of inspections is pretty exhaustive and covers a lot of things within the building and sanitary codes. The city believes that it has a problem with many older buildings being in disrepair and not maintained by the owners. The o

I love the spirit of Jeuji Diamondstone and her dedication to helping renters and improving their housing conditions. With 58% of households in Worcester renting, it's crucial to address their situation. Worcester's housing stock is very old, and most of the three-deckers are heated by gas. Some of these heating systems are over 80 years old. Jeuji's Vision for Housing Improvements Jeuji hopes to see these housing units updated with heat pumps. She believes this switch will l

There's a notable article in the Telegram and Gazette about the spike in demand at food pantries, "Food assistance: Demand at food pantries spikes as rents increase and wages do not". It's safe to say that the majority of visitors to food pantries are renters. If tenants struggle to afford food, they'll likely struggle to pay rent. So, how does this affect you as a landlord? Understanding your tenants and their needs is crucial. They're facing pressure from all sides due to i

Check out this excellent article from Banker and Tradesman, "You Rarely Know All Your Agent Does". While it mostly focuses on listing agents, the same holds true for buyer's agents. You only know some of what your agent does. The article does a fantastic job of highlighting things that often go overlooked by sellers. I wish there was something similar for the buyer-agent side. With the upcoming NAR settlement, buyer's agents must negotiate their commissions. Hopefully, buyer'

The real issue with 1023 Main Street, Worcester wasn't Spectrum Health. It was taxes. Now that we're about six months removed from the debate, it's time to revisit what actually happened. Here are three articles that made it into the papers: "Addiction treatment group buys building in Main South, fueling neighborhood angst" "Spectrum Health Systems adds property in Worcester as it moves headquarters to Westborough" "Main South neighborhood remains on edge about planned drug t

Here is an article that appeared in the Worcester Chamber Exchange. Once again, I've been hammering away at this issue for years on my BiggerPockets blog. Let's not belabor the point, but Worcester's commercial tax rate is directly shaping what gets built in the city. The Current State of Hotel Development Sure, you can spot all the shiny new residential developments in Worcester, but where are the hotels? Why does a city of 200,000 souls have a paltry 1132 hotel rooms? Compa

Have you seen the latest article from the Worcester Telegram? It's about the skyrocketing rents in Worcester. Read the article here. I've been discussing this issue for years on my blog on Bigger Pockets. Make sure to check out my previous posts in the link below. WorcesterMulti Bigger Pockets Blog So, $1919 for a one-bedroom in Worcester? That's way too high. It's changing the whole vibe of the city. Worcester used to have its own identity, but now it's become a commuter hub

I have had this article pop up at least 3X a day on my various news feeds. https://drive.google.com/file/... Some highlights: 7th worst for available rentals 2nd worst vacancy rate 1.7% Median rent $2075 Year over year increase of $175 Worcester is bottom 5% of income for towns in MA What does that mean for the landlord? Some think it is great that there is low vacancy rate so they can charge more for their rentals. This is only partially true. Most of the people looking for

There are a bunch of articles that have come out recently that have brought up the issue that people are having a difficult time paying their utilities. There was an article in USA Today on 4/10/24 that said that home heating costs were down but remained at $836 for the year. If that is across the country, then we have a much higher cost here in Worcester. Statistics on Utility Payments The scariest of these statistics are that: 19.2% of all families couldn't pay at least one

This is an interesting article with some sad news and a quick summary. Read more here Tightening Credit Standards Banks are implementing stricter credit standards, a move that could have varied consequences depending on individual circumstances. Securing loan approval now stands at roughly a 50% chance, reflecting the heightened scrutiny in the lending landscape. Rising Credit Card Balances A concerning trend emerges as approximately half of credit card holders carry balances

In the dynamic world of real estate, shifts in industry practices often spark lively debates and discussions. One such development that's been making waves recently is the evolution of commission structures, particularly concerning the compensation of buyer's agents. Let's delve into what this change means, especially in the context of its initiation in July. The Landscape There's a prevalent belief that larger brokerage firms have wielded significant influence over commissio