Boston’s multifamily fundamentals held on well through the summer, but in line with seasonal patterns, figures began to soften at the end of the third quarter. Rent growth turned negative, down 0.1 percent on a trailing three-month basis through September, to $2,774. Meanwhile, the national rate also decreased 0.1 percent, to $1,722. Yet the occupancy rate in stabilized properties remained one of the highest in the country, at 96.8 percent in August, following a 0.1 percent uptick year-over-year.
In the 12 months ending in July, Boston’s employment market gained 89,500 jobs, or a 2.5 percent expansion, trailing the U.S. rate by 10 basis points. Education and health services and professional and business services led growth, with a respective 26,500 and 22,000 positions. Meanwhile, the unemployment rate stayed flat, at 2.6 percent, in August for the third consecutive month, on par with the state and outperforming the 3.8 percent national rate. The Boston Planning and Development Agency approved the $1.6 billion mixed-use Fenway Corners project.
Developers delivered 4,088 units during the first three quarters of 2023 and had 17,280 units under construction. Although the current supply volume trails previous years, unlike most metros, the number of construction starts increased in 2023. Meanwhile, investors traded $1.9 billion in multifamily assets through September, for a price per unit that increased 11.3 percent year-over-year, to $422,136.
Read the full Yardi Matrix report.
