WorcesterMulti in the News
Back in the news.
Please see this article by Sam Turken of WGBH.
There is a link to an audio file as well:
I may have mentioned in a prior blog that there are times after seeing Multis that I cry for Worcester. This article makes you want to cry.
People who have lived in Worcester for their entire lives are being displaced.
Who is to Blame?
The article seems to think that it is landlords (greedy?) who are pushing the envelope on rents. I say it is the FEDERAL RESERVE BANK who is to blame.
Why?
They reduced interest rates to such a low level that anyone who even considered being a landlord was buying Multis in Worcester and driving up prices. When prices went up, rents went up.
Market Trends
Worcester was a largely stable rental market, but when interest rates dropped below 4% for a 30-year mortgage in 2017, prices for multis began to rise:
2017: Median price for all multis under $600k was $260k
2020: Median price rose to $375k
2023: Median price is probably over $450k
When prices for multis rise, so do rents.
Hopefully, the increase in interest rates will reduce the price of Multis to the level that rents will be able to drop.
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