What’s the Boston Market Like in 2025?

Boston’s real estate market remains competitive. In most neighborhoods, the median home price hovers around $700,000 to $800,000, with many properties going over asking due to demand. That said, price trends vary widely by area: you may find a cozy, but renovated two- bedroom condo in East Boston for around $500K, while a similar 2 bedroom condo in the South End could cost you around $750,000- $850,000 based on what is currently on market. A luxury 2 bedroom, 2 bath condo in the Seaport, though, is currently on market for $2,250,000.

The average mortgage rate is currently around 6.5–7%, which significantly impacts monthly affordability. That’s why it’s essential to go beyond sticker price and understand what you’ll actually be paying per month—including property taxes, insurance, and HOA fees.

Budgeting Basics: What Can You Afford?

A good rule of thumb: aim to spend no more than 28–30% of your gross monthly income on housing. Here’s a simplified breakdown of what you might expect at different budget levels:

• Under $400K: Studio or small one-bed condos in neighborhoods like Hyde Park, Roslindale, or parts of Revere and Chelsea.

• $400K–$600K: One-bed condos or smaller two-beds in Dorchester, East Boston, or Malden.

• $600K–$800K: Larger condos or small single-family homes in Brighton, Jamaica Plain, or Quincy.

• $800K+: Entry-level properties in more central areas or multifamily homes ideal for “house hacking.”

Each price range comes with trade-offs. That’s why it helps to work with local experts who understand the nuances of Boston’s real estate landscape. As a start, you can use the Boston Pads mortgage calculator to get an idea of what you can realistically afford.

BostonPads.com: Your First-Time Buyer Secret Weapon

One of the smartest moves you can make as a first-time home buyer? Start your journey with BostonPads.com. Our premier online platform simplifies the buying process—even if you’ve never purchased property before.

Here’s why thousands of buyers trust it:

• Comprehensive Guides from Boston’s top real estate professionals. You can request yours by filling out this first- time buyer form.

• Daily updates that keep you informed of the latest listings and trends.

• Mortgage calculators, real estate glossaries, checklists (including a multi-family due diligence checklist), and resources for pre-approval, closing costs, and more.

Using BostonPads is like having a personal real estate assistant that never sleeps. You can browse exclusive listings from boutique firms as well as MLS properties, helping you get the best deal possible.

Two- Family Sales Listing in Quincy. Listed by Andrew Sebaaly, NextGen Realty.

Creative Ways to Maximize Affordability

Still feeling like your budget is tight? You’re not alone. Many Boston buyers are thinking outside the box:

• Explore first-time buyer programs like MassHousing, ONE Mortgage, or FHA loans.

• Buy with roommates or family to share costs and build equity.

• Consider a multi-family to offset your mortgage by renting a unit or two.

• Look along transit-accessible neighborhoods that are still up-and-coming.

Watch Out for Hidden Costs

Don’t forget about the not-so-obvious expenses. Be sure to account for hidden costs that can catch first-time buyers off guard. Closing costs alone can add 2–5% to your total budget, and if you’re purchasing an older property, renovation and repair expenses can add up quickly. Monthly HOA or condo fees, often ranging from $200 to over $700 per month, should also factor into your affordability calculations. On top of that, you’ll need to budget for homeowner’s insurance and set aside funds for ongoing maintenance and unexpected repairs. Planning for these expenses upfront will help you avoid surprises and ensure a smoother homeownership experience.

Be Informed, Not Overwhelmed

Buying your first home in Boston isn’t easy—but it is possible. It’s about making smart compromises, understanding your numbers, and having the right tools and people on your side.

Whether you’re just beginning to think about buying or you’re ready to tour properties this weekend, head over to BostonPads.com to access expert-backed tools, listings, and insights. You’ll not only save time—you’ll likely get more home for your money, thanks to the site’s negotiation tips and exclusive local intel. We look forward to working with you.