With mortgage rates at historic lows and rents on the rise, owner-occupants of multifamily properties have become popular in Massachusetts.
According to the Boston Business Journal, many Massachusetts residents have been purchasing multifamily units and renting out one half to help pay for their mortgage.
"Eight out of 10 multi-family properties are bought by owner-occupants," David Offutt, owner of Brockton-based Equity Realty Plus, told the news source. "Two years ago, it would have been three out of 10."
Through the first three quarters of the year, 4,038 multifamily homes have been sold in Massachusetts, a 4.3 percent year-over-year increase, according to the MLS Property Information Network.
The median price for a multifamily home in Boston has been on the rise, increasing from $342,200 to $400,000 on an annual basis in the third quarter.
Despite the increase, a multifamily home is still cheaper in the Bay State than a four-bedroom, two-bathroom, single-family home. According to the Coldwell Banker Real Estate Home Listing Report, the average price for one of these homes is $489,063.
This could lead to increased demand in the multifamily market, which may have owner-occupants and other landlords seeing more rental applications for their properties.