Boston & NYC

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Boston & NYC

In reference to our findings the average cost of single-family housing in Boston in 2016, 2017, and 2018 was $526,083, $567,500, and $616,000 respectively while the average cost of single-family housing in New York City in 2016, 2017, and 2018 was $561,583, $621,500, and $688,167 respectively. Further details of our research methodology and findings follows below.

METHODOLOGY

POPULATION

We first looked for data in government websites such as the U.S. Census Bureau and the American FactFinder. Through this strategy, we were able to get the 2016 and 2017 populations of both cities, but there was no data for the 2018 population. We then looked for estimates and projection from local government websites by looking into each city's planning and projection reports. We were able to get population projections for both cities, which we used to triangulate/estimate the 2018 population of both cities.

AVERAGE HOUSE PRICE AND RENT

We first looked in government websites such as the U.S. Census Bureau and the American FactFinder for relevant information, but the data presented in these websites was not classified for single-family housing as required by the research criteria. The available annual median house values and median gross rents only seemed to be for the whole United States market and not for single-family housing.

Next, we searched for other credible resources that would give us the required data and we were able to find the Zillow website, which is a real estate information database for the American market. Through this resource, we were able to find information for the average cost and average rent of single-family housing in Boston and New York City. Although Zillow provided only the monthly median sale/listing price of single-family housing in both cities, we were able to calculate the annual averages for each city. All our calculations for the average cost and average rent of single-family housing in Boston and New York City have been presented in detail on the attached spreadsheet. As for CAGR information, we made extensive use of this CAGR calculator to present population CAGR rates for both cities as necessary.

1. BOSTON CITY

POPULATION

According to the Boston Planning and Development Agency's (BPDA) "Demographic Trends in Boston" report, the population of Boston in 2016 and 2017 was 672,840 and 683,015 respectively.

The 2010 National Census put Boston's population at 617,594 while the BPDA expected the city's population to reach 676,000 by 2020. Using this CAGR calculator and the statistics presented above, we calculated Boston's population growth from 2010 to 2020 to be at a CAGR of 0.91%.

After applying the calculated CAGR to Boston's 2017 population of 683,015, we estimated the city's 2018 population to be 689,230 with the assumption that the 10-year population growth projections that were made by BPAD were accurate.

POPULATION GROWTH RATE

Boston's annual population growth rate for different years is as presented below:

  • From 2015 to 2016 - 0.5%.
  • From 2016 to 2017 - 1.5%.
  • From 2017 to 2018 - 0.91%.

CAGR FROM 2016 TO 2018

Using this CAGR calculator and the 2016 and 2018 population numbers as the initial and final values respectively, we calculated Boston's population CAGR rate from 2016 to 2018 to be 0.81%.

AVERAGE COST OF HOUSING

In reference to the real estate statistical information presented by Zillow, an online real estate database, we calculated the average cost of single-family housing in Boston using the attached spreadsheet. Consequently, from the calculations, we estimated the average cost of single-family housing in Boston for 2016, 2017, and 2018 as $526,083, $567,500, and $616,000 respectively.

AVERAGE RENT

In reference to the real estate statistical information presented by Zillow, we also calculated the average rent of single-family housing in Boston using the attached spreadsheet. Consequently, from the calculations, we estimated the average rent of single-family housing in Boston for 2016, 2017, and 2018 as $2,928, $3,049, and $3,079 respectively.

2. NEW YORK CITY

POPULATION

According to the United States Census Bureau, the population of New York City was 8,451,961 in 2016 and 8,622,698 in 2017.

2018 POPULATION TRIANGULATION

In reference to the New York City Population Projection report, NYC's population was projected to increase by 3.7% from 2010 to 2020. The report also estimated NYC's 2010 population to be 8,242,624.

Because the city's population was projected to grow by 3.7% from 2010 to 2020, we calculated the estimated 2020 population as follows:

***2020 Population = 8,242,624 + (8,242,624 x 3.7%) = 8,547,601.

Using NYC's 2010 population as the initial value and the city's estimated 2020 population as the final value, we used this CARG calculator to calculate New York City's 2010 to 2020 population growth to be at a CAGR of 0.36%. We then applied the calculated CAGR to NYC's 2017 population using the same CAGR calculator to estimate the city's 2018 population as 8,653,740.

POPULATION GROWTH RATE

New York City's annual population growth rate for different years is as presented below:


CAGR FROM 2016 TO 2018

Using this CAGR calculator and the 2016 and 2018 population numbers as the initial and final values respectively, we calculated New York City's population CAGR rate from 2016 to 2018 to be 0.79%.

AVERAGE COST OF HOUSING

In reference to the real estate statistical information presented by Zillow, we calculated the average cost of single-family housing in New York City using the attached spreadsheet. Consequently, from the calculations, we estimated the average cost of single-family housing in New York City for 2016, 2017, and 2018 as $561,583, $621,500, and $688,167 respectively.

AVERAGE RENT

In reference to the real estate statistical information presented by Zillow, we also calculated the average rent of single-family housing in New York City using the attached spreadsheet. Consequently, from the calculations, we estimated the average rent of single-family housing in New York City for 2016, 2017, and 2018 as $2,723, $2,638, and $2,565 respectively.
Sources
Sources

Quotes
  • "New York City is projected to grow from 8.2 million persons in 2010 to 9 million in 2040, an increase of 783,000 or 9.5 percent. In 2010-2020, the first decade of the projection, New York City’s population is projected to increase by 3.7 percent, but growth is expected to slow to 3.2 percent in the following decade, with the population reaching 8,821,000in 2030. Between 2030 and 2040, the growth rate in New York City is projected to decrease once again to 2.3 percent "