Worcester Multi-family Update-- Getting Priced out? T&G article
Is Worcester gentrifying? I believe so. But why? What are the factors contributing to this?
Factors Contributing to Gentrification
Development: Polar Park and the development in the immediate area are creating jobs.
Momentum: Now that Worcester is on the map, people want in.
Covid: If I only have to go to work a couple of times a week, why not live in a great mid-sized city?
Population Growth: The population in Worcester is up 14% in the last decade.
What is Happening?
With more population, rentals are scarce, so rents are increasing.
When rents increase, investors are willing to pay more for multi-family properties. Investors actively try to raise rents to market levels, leading to a scarcity of Section 8 rentable units. This, in turn, raises rents across the board.
ALL RENTS RISE. THE ONLY PEOPLE WHO CAN AFFORD MARKET RENT ARE THE RICH AND THOSE WITH SECTION 8 VOUCHERS, AND THE MIDDLE CLASS GETS PUSHED OUT.
Additional Resources
Here is the article from the Worcester T&G:
How Can We Make Things Better?
Try to buy properties where we don't have to charge premium rents to make it a solid investment. Keep in mind that if your tenant can afford the rent, they are more likely to pay on time.
As always, reach out if you are interested in buying or selling a multi-family property in Worcester.
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