What will Rent be in 5-10 years

Question

I currently own a 2 family in Weymouth Ma and want to know if anyone were to guess in the south shore area of Braintree , Weymouth , and Quincy Ma what could rentals go up to? I live in a 1 bed room unit and rent out the 3 bedroom unit for $2400 a month what do you think a 3 bedroom and 1 bedroom unit could go for in 5-10 years ?

Kirk R. · Answer

Maybe a better question is how much will a loaf of bread be in 10 years?!

Michael Parks · Answer

Chris, I live in hull on the south shore near you. I see a ton of class A construction. I suspect we will begin to see rents flattening in the near term 2-3 years as more comes available and a weaker economy coming out of this crisis.  I do a lot of modeling - glad to look at numbers with you if you want to DM me.

Bjorn Ahlblad · Answer

@Chris Munichiello determine what the increase has been over the past 10 years and use half that going forward to account for a depression. Nobody knows what the picture might be 5-10 yers from now. Could be easy street or boarded up windows or somewhere in between.

Rock Stevens · Answer

I would look at this in terms of percentages, not dollar values. I would calculate over a 10 year period that the rental income would average out to an annual 1.0-1.5% rental income escalator. This, of course, does not factor in economic recessions, fluctuations within the market, or a drastic change in crime rate, school systems, job growth/decay, or migration. There are several factors that could change that, however, 1.5% annual rental escalation should be reasonable, and other areas might see as high as 3-4%. I would be careful not to be too aggressive/optimistic about calculations, it's always better to be conservative and then be pleasantly surprised!

What will Rent be in 5-10 years

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