...and lately the direction of rents has not been to the favor of tenants.  The Boston Globe reports today that "Average monthly rents in the metropolitan Boston area, loosely defined as within Interstate 495, jumped to $1,686 between October and December, compared with $1,649 during the same period the previous year and $1,600 in 2009."  Limited supply and high demand, the article goes on to say, are what is putting pressure on rents at this time.  If a resident who is currently renting at the average rate, who is secure in their employment and has the requisite downpayment, could lock-in their monthly housing costs for the next 30 years (or however long they expect to stay).  A payment between $1,600 and $1,686 on a conventional 30 year, fixed rate mortgage would purchase a condominium in one of four Downtown Boston neighborhoods: South Boston, The South End, Beacon Hill, or Charlestown.  

The magic is in the numbers. Mortgage rates are low, in fact as low as most Americans have seen in 60 years.  Prices in Downtown Boston are stable and rising.  Renters might not be ready to take the plunge and purchase but they should be perpared to when it is right for them..Should rents continue to rise at the rate shown above, and mortgage rates move higher as the economy improves, tennants may find themselves priced out of Downtown Boston either as renters or homeowners.