South Boston, affectionately known as “Southie,” has seen a tremendous change in demographics over the past twenty years. As a flood of young professionals and families move into the neighborhood, an influx of new retailers and restaurants to serve the needs of the changing population are moving into the area.
Now, South Boston has a growing number of exciting restaurants, unique boutiques, and cute cafes. This active neighborhood offers multiple spin studios, yoga studios, and gyms. These venues offer opportunities for residents to get to know their neighbors, fostering a strong sense of community.
South Boston’s natural amenities are some of the best in the city. Take a trip to Castle Island (a peninsula, really) to enjoy what many consider to be one of the best parks in Boston. Explore jogging trails, take a swim, or relax on the sand. This is the perfect place for a scenic picnic! Or head over to Carson Beach, one of the best beaches for swimming around the city.
Prices in South Boston have remained consistent quarter over quarter, but the total number of units closed has experienced a significant decline (228 in Q2 2019 versus 139 in Q2 2020). Despite this impact, South Boston remains Boston’s largest submarket by total number of transactions, and the new development in the area continues to drive $/SF consistently year over year.
There are several new luxury developments that have put units under agreement during this time, including The Mezz (420 West Broadway), 340 W 2nd Street, and Ceinture (20 West 5th Street), which will all be closing in Q3 2020 and Q4 2020
These new developments will likely raise the average $/SF and absolute price in this submarket significantly, as The Mezz currently is showing some units UAG north of $1,100 psf and 340 W 2nd Street has a PH unit that sold for $1.14M this quarter
Studios and 1BR units are in high demand and command a higher $/SF than any other unit type due to their relative scarcity
There were only two studio closings in South Boston in Q2 2020, which will change dramatically in Q3 - Q4 2020 when The Mezz delivers their studio homes