6 Reasons Why Entrepreneurs Should Relocate to Boston

Boston is one of the oldest cities in the United States. It was settled by the Puritans in the 1600s. However, it has far from run its course. In fact, the city is reinventing itself as an innovation hub. Here are 6 reasons why entrepreneurs should relocate to Boston. 

It Is a Relative Bargain in Terms of Real Estate 

Boston is one of the more expensive real estate markets in the United States. In 2019, it was the fourteenth most expensive real estate market in the United States. The average home cost around 660,000 dollars in 2019. The cost of the median apartment or condo in New York City hovers around a million dollars.

The average rent for an apartment in Boston was 3,400 dollars, though this is for an 800 square foot unit. For comparison, the average rent in Manhattan is 4,200 dollars a month for just 700 square feet. Upscale neighborhoods like Battery Park City come with a 5,500 dollar per month price tag. 

This is why many financial firms have moved from New York to Boston. They save a third or more on real estate, and they can pay their people less for the same reason. Yet they’re close enough to New York City to visit if necessary. You can find a wide range of apartments in Boston. 

It Has a Strong Startup Ecosystem 

What is a startup ecosystem? It incorporates incubators that foster startups, lenders that will loan them money, a large and talented labor pool and laws that protect them. California’s tech boom was driven in part by its relaxed non-compete agreements and the large college educated workforce fueled by Stanford and Berkley. Boston has its own version of this. Harvard University graduates some of the most talented people on the planet. However, they aren’t the only ones. Massachusetts Institute of Technology is just as influential, producing more engineers than lawyers. There are graduates coming out of Boston College, Boston University, Tufts, Northeastern University, the University of Massachusetts Boston, Suffolk University and other schools, as well. There are an estimated quarter million college students in the Greater Boston area, and there may be that many in vocational and tech schools. Many of these colleges have incubators for their students. This creates a relatively young, mobile and supported workforce eager to take on the challenge of working for a startup. 

Boston’s startup culture is further fueled by the massive banking sector, including venture capital. And you aren’t competing with the hottest app to get funding. This is why Boston has been landing more early-stage funding deals than New York City. 

It Has an Incredible Tech Ecosystem 

A 2019 survey ranked Boston one of the top ten cities to become a tech innovation hub outside of Silicon Valley. That was before the coronavirus from China drove many people to relocate to the suburbs and flee Silicon Valley outright. Boston has a strong tech startup culture thanks to Massachusetts Institute of Technology. Yet it has tried to differentiate itself by fostering a large biotech industry. This is why Boston is home to so many new pharmaceutical companies and health IT firms, an estimated one thousand to date. Boston is unusual for having a disproportionately large number of startups with products aimed at the elderly from the Pillpack to next generation hearing aids. While this isn’t as sexy as having the latest hot app, it creates a more sustainable business community over the long run.

The goal is to continue creating the high paying jobs that Boston is known for. (The median annual income is just over eighty thousand dollars a year.) This also puts the average home in reach of Boston residents, where they spend around a third of their household income on housing. 

Boston Is Well Connected 

Boston has excellent transportation connections to New York City and Washington DC by rail, air and water. It is also unusual for having a strong connection to Europe. This makes it easier for local startups to expand throughout the Northeast or go global. This is why Boston has long been called the Hub.

The large open common spaces and the ability to meet people walking to work could be an asset in its own right. You connect to other people, including the random connections that lead to innovation and opportunities. You can’t do that if you’re driving from the suburbs to downtown and back every day. 

Boston Has Removed Its Barriers to Business 

How did a city that’s home to Harvard and MIT fall behind San Francisco when it comes to innovation? One reason was its more restrictive laws. Massachusetts changed its restrictive non-compete laws to mirror those of California in 2018.The state rolled out a precursor to Obamacare in 2006.

The city transformed the South Boston Waterfront into a startup-friendly area. For example, it hosts coworking spaces, a civic center and commercial space. There are a number of women and ethnic minority focused initiatives in that area intended to help them start businesses or grow them. 

It Is a Great Place to Live 

Boston beats many other cities in terms of quality of life. In 2019, it ranked the best in quality of life in the United States and eighth in the world by Deutsche Bank. They took factors like housing affordability, disposable income and healthcare into account. 

Much of the city was built when people could only walk or ride horses, so it is by definition pedestrian friendly. It has the third best walk score of any major city in the country. It has excellent public transportation, too. It doesn’t have the same nightlife as New York City, but it doesn’t have the high crime rate, either. Yet you aren’t missing out on high culture. The city has a fine arts museum, theater company and orchestra.

On the other hand, you get a strong economy, lots of family activities, and a massive arts scene. (Boston has the highest art per capita funding in the U.S.) It is quite possible that no other American city balances family-friendliness with cultural activities and affordability. And that makes starting your business in Boston a good, long-term move. Your employees will come for the job opportunities and want to stay for a lifetime.