Fitchburg MA - Multifamily Market Update March

[Ian Hogan]

Fitchburg is not the largest of markets but still remains an ideal location to invest in due to the amount of rent vs the price of properties. Sales seem to be keeping up with Listings with no major changes compared to 2023. Market Supply is tracking very similar to the Listing Inventory, indicating buyer’s are still active in the market and aren’t sitting on the sidelines. Compared to the previous year, price competition seems decent for the buyer, although if 2023 is any indicator of the year to come, the competition will be brutal with properties on average going over 3% asking (this seems small but across the state this average is on the higher end).

[Jacopo Iasiello]

Thanks Ian! :)

[Mike Anderson]

Spent a considerable amount of time in Fitchburg when my girlfriend back in the day went to Fitchburg state... That area must have come a really really long way since i was there for it be considered a good investment now. 

[Ian Hogan]

@Mike Anderson

Based on the influx of investors there are definitely areas that are being improved. As long as appreciation and pricing pushes investors out of Boston to other tenant heavy areas that have job growth or easy access to highways/transport it will likely continue to improve.

Very similar to the growth/improvement of Worcester from what Worcester looked like ~10+ years ago. That being said, still some areas in both Worcester and Fitchburg you won't see me walking around at night.

[Mike Anderson]

I grew up in Springfield so those areas are still nicer than I grew up with!!! Glad I got out!

[Andrew Freed]

@Ian Hogan - Thanks for the data Ian! It looks like Fitchburg is more competitive than last year given the list price vs. sold price. Personally, I invest in Worcester however in Fitchburg, you can get cheaper properties for similar rents hence the numbers do make sense. 

Personally, I am not sure of the economic upside given their main attraction is their university, but the rents and price per property seem to be keeping up with market conditions. 

[Todor Ialamov]

@Ian HoganI love the Fitchburg market. It is easier to find a value add project and the rent prices and demand are really high.