FINAL REPORT.E [PERFECTO]

FEASIBILITY ANALYSIS

FEASIBILITY ANALYSIS

Figure 2 Employment by Industries in Boston, MA……………………………………………5

Abstract

In order to inform FIU students about the realities of relocating to Boston, I analyzed various aspects that affect the overall cost of living in the city.

Findings

· Boston has a scarcity of parking spaces and bad traffic, but its public transportation system has been ranked among the best in the country and a CharlieCard monthly payment of $84.50 includes unlimited travel in the subway, bus, and commuter rail.

· Property values are among the five highest in the nation, but the addition of over 6,000 new housing units has caused the market to stabilize.

· The city’s unemployment rate of 3.5% is lower than the national rate of 4.1% with an addition of 22,400 over the last year.

· Since the 1970s, diversity has spread and over half of Boston’s population has become non-white.

· There are free activities and reduced price events to enjoy in the city while on a budget

Conclusions

· Boston is an expensive city to live in, especially with regards to transportation, living arrangements, and winter costs, but it offers ample educational and professional opportunities.

· In order to live in the city while on a budget, certain savvy choices must be made.

Recommendations

· Get roommates in order to lessen monthly rent payments

· Make certain the neighborhood you move to is affordable and low in crime

· Invest in a student or regular CharlieCard in order to save on public transportation

· Purchase winter clothing well before the season begins for affordable options

· Look into free and reduced price options in order to have fun without over-spending

Introduction

Today’s college graduates often are faced with the consideration of relocating cities in order to advance their careers, jumpstart their careers, or both. Boston is often one of the cities most explored by young graduates, but it comes with its drawback that must be taken into consideration. The cost of living can prove challenging for renters and buyers since it’s the fourth most expensive US city to live in (Goetz, 2017). Owning a car is more a hindrance than a solution because of traffic and the scarcity of parking. During the winter, natural gas for heating purposes can cost up to an additional $846 (Mass.gov, 2017).

Given that the cost of living can seem impossible, graduates might consider rooming with others in order to reduce the cost of rent. Also, they can consider a monthly CharlieCard payment in order to reduce costs of transportation (MBTA, 2018). When wanting to partake in activities, they can resort to free or affordable options, such as parks, some monuments, some museums, and more (BostonOnBudget). The low rate of unemployment means that jobs are not scarce, so graduates can find work with relative ease (BLS, 2018).

Graduates interested in relocating to Boston in order to continue their studies or careers need answers to the following questions:

· Is moving to Boston a feasible idea?

· If so, how can I reduce my cost of living?

To answer these questions, this report analyzes information gathered from various websites, articles, forums, locals, and professionals. After presenting the issues of Boston living, the analysis examines cost of transportation, living arrangements, crime, employment opportunities, activities, diversity, and seasonal effects.

Data Section

Costs of Transportation

Boston has been named one of the worst traffic cities of the United States and the second worst for collisions in the entire country, with only 46% of people commuting to work in their own cars, and 35% of households owning absolutely no cars (Clauss, 2015). In a city with some of the oldest road systems and architecture in the nation, parking spaces are scarce, therefore thousands of Bostonians prefer to bike their way to work or school, or use the public transportation system known as the MBTA.

The Massachusetts Bay Transportation Authority, or The MBTA, consists of buses, subways, commuter rail zones, and ferries. For those who do not take public transportation often, one-way tickets can be purchased for any of the preferred methods of transport. Weekly passes and monthly passes are also an option with the purpose of reducing costs for commuters who regularly use the public transportation systems (MBTA, 2018).

According to the MBTA (2018), the Subway starts at $2.25; the bus starts at $1.70; the commuter rail starts at $2.25, and the ferry starts at $3.50. If a commuter travels with a ticket the price is higher, whereas recharging the CharlieCard, a reusable card that needs only to be purchased once, will result in slightly discounted prices. Further discounted deals can be acquired by students of universities when they purchase a semester CharlieCard through their school. The Monthly CharlieCard payment of $84.50 will allow for unlimited travel for that entire month on the local bus, subway, and commuter rail zone.

In short, purchasing a CharlieCard once and reloading the card saves money. If continuing to study upon relocation to Boston, taking advantage of the college student semester-long CharlieCard is a possible solution. For none students, the Monthly CharlieCard is another possible solution.

While the MBTA was rated one of the best public transportation systems in the country, locals feel contradictory about the infrastructure issues brought about by how old the system is. They argue that, though fares are cheaper than in New York, rates still rise yearly (Agnew, 2016). However, it is the fifth most used public transportation system in the country, with thousands relying on the MBTA to reach school or work.

Living Arrangements

Owner Values. According to Zillow (2018), the median home value in Boston is $569,500, with home values that have risen 6.6% over the duration of a single year. The estimated growth rate for the values is approximately 3.5% by 2019. The median price per square foot in the city is $716. Although the median price for homes was stated at $569,500, homes are usually listed at a median of $740,000 and sold at a median of $578,400. It is the fourth most expensive US city to live in, falling shortly after Manhattan, San Francisco, and Honolulu, while reigning supreme over D.C, Oakland, San Jose, San Diego, Los Angeles, and Miami (Goetz, 2017).

Essentially, the housing market in Boston is hot and on demand for prospective home owners, with prices amongst the highest in the country.

Rent Values. According to Logan (2018), the average monthly rent for apartments in Boston is $2,117, which has increased 2.9% since 2017. However, Logan states that the rent market is finally stabilizing, even though it is not decreasing, with the addition of over 6,000 new apartments throughout the city.

As Figure 1 demonstrates, the sharp incline that has developed since 2013 has reached a stabilizing plateau.

Figure 1. Apartment rents in Greater Boston

In essence, if the city of Boston continues adding housing units, rent costs could remain stable or become more affordable. Rooming with others is a possible solution to reduce monthly costs.

Neighborhoods. The most affordable rent in Boston is found in neighborhoods like Roxbury, Dorchester, Roslindale, Jamaica Plain, and Allston-Brighton, while the least affordable neighborhoods for renters are Bay Village, Chinatown, Back Bay, and Beacon Hill (YourTown, 2018).

If continuing education in Boston, the location of universities and colleges also plays a part in choosing neighborhoods for housing. Boston University and Boston College are in the Allston-Brighton area and close to Fenway; MIT and Harvard are in Cambridge, and Emerson College near Downtown. According to Agnew (2016), Allston-Brighton is highly populated by college students due to proximity and affordability, but it is not a quiet place to live in for that same reason, while Jamaica Plain is valued for its diversity and arts scene, and Fenway for its Red Sox stadium. Living close to your enrolled college is a solution to cost of transportation.

Each neighborhood is associated with a different attraction and renters and buyers choose their locations based on varying factors, such as price and proximity.

Survey on Living Factors. Proximity to work and school is a large deciding factor when choosing a neighborhood because many Bostonians choose not to use their own cars, as mentioned previously, and rely on public transit. According to the results of a survey conducted by Urban Land Institute (2015), 81% of young professionals, or the millennial cohort, said that “ease of commute” was the most important factor to consider when choosing a neighborhood to live and work in.

Based on the survey, proximity to public transit is more important than surrounding activities, and just as important as apartment or home price. Living close to work and school is a solution to high costs of commute or inaccessibility to transportation.

Crime. The violent and property crime rate in Boston is lower than the national average and is at an all-time low for the city (USNews, 2017). The neighborhoods of Roxbury, Downtown, Dorchester, and Mattapan are reputed to be the most unsafe because of higher rates of aggravated assault, robberies, and property crimes (Wu, 2017). However, according to Smarter Travel (2017), locals claim that the city is one of the safest compared to larger cities, and that crime usually arises after dark, specifically if walking alone.

Every neighborhood has its better or worse areas and walking accompanied in the night is a possible solution to avoid becoming a victim of crime.

Employment Opportunities

According to the BLS (2018), Boston’s unemployment rate is at 3.5%, while the national unemployment rate is at 4.1%. Boston added 22,400 jobs, experiencing a 0.8% growth rate.

Some argue that the city experienced less growth than most metropolitan American cities, but the city still had an unemployment rate lower than the national average.

Career fields. The most on-demand and growing career fields in Boston are business, healthcare, and education (BLS, 2018). Boston is a city renowned for its academic culture, so the education and publishing/writing fields are among the best in the country. It is also a modern city, with the technological field, such as Information Technology, in a constant state of growth. Furthermore, the healthcare field, with therapists, nurses, dentists, and doctors, is promising. Business related jobs, like accounting, are on demand as well.

In essence, the city is promising for students and young professionals looking to enter various distinct fields. It is not suitable solely for one or two fields, but a number of them. However, a possible solution to not finding desired jobs is to move to Boston if the preferred career field is among the three most prominent.

As Figure 2 confirms, there are various career fields in Boston, with Healthcare, Education, and Technology boasting of the most employees.

Figure 2. Employment by Industries in Boston, MA

Diversity

Some may argue that Boston is not as diverse as it should be, with white residents nearly two times more present than other residents, but Boston is considered to be diverse in its own right, ranking number twenty in the United States for cultural diversity (WalletHub, 2017). Since the year 1970, the city has gone from a 70% white population to a 47% white population, hinting at much progress in the favor of diversity and multi-culturalism since the turn of the century (Lima & Melnik).

Demographics. Its population is as follows: about 300,000 white residents, 155,000 black residents, 131,000 Hispanic residents, 64,000 Asian residents, 16,000 multiracial residents, 700 Native residents, and 8,000 who identified as other. The most common languages spoken, aside from English, are Spanish, Chinese, French Creole, Portuguese, and Greek, in that order (DataUSA).

The city, although not as diverse and New York or Jersey City, has a mixture of residents that create a vibrant scene, as evidenced in the culturally diverse restaurants and art scenes of places like Jamaica Plain.

LGBTQ+. According to the Municipal Equality Index (2017), the city of Boston achieved a score of 100/100 when assessing non-discrimination laws, municipality as employment, municipal services, law enforcement, and overall relationship with the LGBTQ+ community. What this means is that the municipality does not discriminate against LGBTQ+ employees when hiring, their needs are met by including them in city services and programs, the police respect them, and laws are enacted so that the LGBTQ+ community cannot be denied work, rent, or service in public places.

Boston proves to be a city with people whom are accepting of those with different sexual orientations and diverse backgrounds.

Effects of the Winter

Most FIU students typically have not experienced northern winters. In Boston, the winter season is known for its longevity and storms.

Nor’easters. While Miami is notorious for its hurricane season, Boston is notorious for its snowstorms, called Nor’easters. A Nor’easter does not have to involve snow, but many do. It is a storm with strong winds off the Atlantic Ocean and they can happen any time of year. They are strongest and most frequent in the Winter, and Boston is one of the cities most prone to attract these powerful storms. They bring heavy rain or snow, strong winds, flooding, and rough seas (Donegan, 2018).

A possible solution to these strong Nor’easter storms is to stay informed through news channels or apps, stocking up on necessities, prepare your home, evacuate if necessary, and stay indoors (MassGov, 2017).

Cold Days. The amount of days in Boston that reach below twenty degrees are usually not many, but days below freezing (32°F) are very common during the winter season. The coldest and snowiest months in order from greatest to least are January, February, and December (Horowitz & Tran, 2015).

Appropriate clothing and layering is a possible solution for the cold winters of Boston, as is a heater inside the home.

Costs of Winter. The winter season can bring about a couple of expenses along with the cold weather and snow. A broken heater system, frozen pipes, and a leaking roof are common winter consequences that will require a technician and an often hefty fee (Rox, 2017). Even if the heater does not break, relatively high gas bills will ensue for those who want to keep their homes warm. According to MassGov (2017), natural gas will cost an estimated $846 while heating oil will average $2,278.

While Boston is a Northeastern city which endures heavy winters, only a handful of days reach the teens.

Additional Costs

While most of the expenses of Boston living are due to transportation, housing, and the weather, other factors contribute to the overall expense.

Recreational Activities. Concerts and highly coveted sports tickets will leave a hefty dent in pockets, but there are other affordable options in the city. Because Boston is steeped in centuries of history, walking and biking in the city are common activities locals and tourists partake in regularly. Boston is ranked number three amongst U.S cities for walkability and number five for bike-friendliness (WalkScore, 2017). Heading to public places, such as historical monuments, Faneuil Hall, and the Boston Common park, are completely free. Many museums, such as the MIT Museum and the Institute of Contemporary Art are free on specific nights (BostonOnBudget). Restaurants and bars, however, require larger expenses. For instance, a modest dinner for two at a pub will fare around $50, a cocktail in a club around $13, and a pint of beer will be around $7 (Expatistan, 2018).

While there are hundreds of affordable and moderate eateries and bars, a possible solution to reducing costs while still having fun is to browse free options.

Necessities. Other costs to consider are the basic necessities of day-to-day life and how much they will cost in Boston, since prices vary from city to city. According to Expatistan (2018), personal care items like cold medicine cost about $7, deodorant will cost $4, toothpaste will cost $2.40, and four rolls of toilet paper will cost $3.60. Basic groceries like a liter of milk will cost $1, two liters of Coca Cola will cost $2, while two pounds of tomatoes will cost $4.40.

These are necessities that will have to be bought regularly. A possible solution to ensuring these essential products are always able to be purchased is to keep a separate fund and to ensure none of these purchases are wasted.

Conclusion

Summary of Findings

A relocation to Boston, Massachusetts entails a generally high cost of living, with transportation issues, high housing and renting costs, and added expenses during the winter season. This city offers ample employment and other factors to consider.

College graduates interested in relocating to Boston also encounter: (1) diverse neighborhoods, (2) a positive LGBTQ+ community, (3) ample employment, (4) low crime, and (5) affordable recreation. The city of Boston offers cons and pros based on affordability, community, and long-term opportunities.

Interpretation of Findings

For FIU students looking to further their education and/or jumpstart a career, specifically in the realms of education, health services, and technology, Boston offers various opportunities. Young individuals who are considering a relocation to Boston, however, must learn to balance living costs in the expensive city.

Those who decide to relocate to Boston have various aspects to consider:

· If diversity is important, Boston is influenced by residents of many different backgrounds

· If concerned with LGBTQ+ rights, Boston is a liberal and welcoming city

· If looking for jobs and education, the employment rate is high and colleges abound

· If wanting to have fun on a budget, various free activities are offered

Recommendations

If you would like to move to Boston while on a budget, consider these suggestions:

1. Room with one or more people in order to lower the high costs of rent per person.

2. Research the neighborhoods you are considering settling in before the big move to ensure it is a safe, low-crime neighborhood.

3. If continuing education, purchase a semester long student CharlieCard to save money on the MBTA. If not continuing education, purchase a regular monthly CharlieCard.

4. In order to combat the harsh winter weather, purchase durable layers and a coat in neutral colors so as to reuse them with various outfits. Consider purchasing off season so as to save money.

5. To save on recreation, look into free events or reduced price admissions.

Works Cited

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