Worcester Business Journal

24 Worcester Business Journal | December 23, 2024 | wbjournal.com SERVICES INCLUDE • Office Moving • Residential Moving • Long Distance Move • Corporate Relocation • Trash Removal • Flood & Fire Restoration • Senior Moving • Portable Storage • Warehouse Storage • Final Mile Delivery • Long-Term Storage • Short-Term Storage • Packing & Unpacking • International Moving Warehouse Storage For Rent Asset Management Program Office and Lab Moving WE KNOW STORAGE!!!! thestoragecompany.com Housing Continued from page 23 rents are almost as good as Worcester, but the building is cheaper." e drawback to that strategy is less financial appreciation than you would see in a place like Worcester, he said. North and south Kalogeropoulos sees potential in Worcester's immediate south. "I really like Auburn a lot. It has a decent multi-family stock, not big multi-families, but two- and three- [bed- room units]. I think it's a hidden gem. It's got everything you need: excellent school system, great highway access, restau- rants," he said. "It's a great place to buy." Further south, Southbridge has seen at least two dozen multi-family trans- actions in 2024, with investors taking interest in its existing stock of smaller multi-family units, which once housed the area's mill and factory workers. About 44% of Southbridge's 7,478 housing units are in two- to four-family buildings, according to data from the Metropolitan Area Planning Council. Sales have ranged from two-unit houses to large complexes to a 116-unit housing development sold for $7.1 million, a deal where Kalogeropoulos represented the seller. However, Kalogeropoulos doesn't see it as a strong market, particularly due to the local school system's eight-year-long state receivership and flat population. Southbridge is about equidistant from Hartford, Providence, Worcester, and Springfield, but census data doesn't indicate out-of-town renters are moving there in significant numbers yet. "e sales we've seen in Southbridge were high-water points," he said. Sales in Southbridge have been inflated by one landlord, Michael Kline of Needham, who has sold at least 19 properties in the last 12 months. If Southbridge's school system can es- cape receivership, the market might have more long-term potential, said Allen, with Fitchburg also showing promise. "Southbridge is an up-and-coming market because, you know, it has all the infrastructure," he said. "Same with Fitchburg, those markets do okay. ere's just not the number of units." Collette sees promise to the north, where Devens is attracting potential tenants with high-paying jobs. "e multifamily market in particular in Fitchburg is getting hotter," he said. I'd pay $1-2K for a Worcester rental Between 2013 and 2022, the median gross rent in Worcester increased from $1,015 to $1,312 per month, according to data included in an October presentation produced by the City of Worcester as part of its efforts to produce a housing production plan. The same presentation noted new housing developments in Worcester have an average per-unit asking rent of $2,310 per month. Studio rent prices at The Revington, a 228- unit mixed-use apartment building near Polar Park opened in 2023, start around $2,000, with two-bedroom apartments ranging from $3,282 to $3,469, according to listings on Apartments.com. A few blocks away on Green Street, studios at The Cove, a 173-unit development opened in October, also started at around $2,000, with two- bedroom units going for between $3,975 to $4,465. When polled online, the majority of WBJ readers said the most they would pay per month for a Worcester apartment is $2,000. What is the most you would pay per month for a Worcester apartment? READER COMMENTS: "The issue as I see it is with the subsidized apartments. When the government pays above market rate monthly payments to owners of apartment buildings, it does not give an accurate reading on actual market monthly rent." - Robertson Construction 56% $1,000 - $2,000 34% $2,000 - $3,000 5% 4% $3,000 - $4,000 $4,000 + W

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