The Price is Right: The Rising and Falling Rents In Boston
Luxury rents in Boston are beginning to dip while the middle and low end of the market continues to see rents rise. According to Zillow data, the median rent for the top third of the market fell below $3,000 in June to $2,986. This is a slight decrease from June 2017, where the average rent was $3,018. The middle and lower third of the market, however, both saw increases in average rent over the same time period. These rental trends have also been seen in other cities across the U.S. including San Francisco, Chicago, and Washington D.C.
With large influxes of high-end inventory, all offering top finishes, and amazing amenities, property owners are starting to adjust rents downward and in some cases offer concessions to attract renters. Several luxury buildings across Boston, including Benjamin/Via in the Seaport, 345 Harrison in the South End and Lantera in Boston Landing, are all currently offering 1 or even 2 months free rent to attract top tenants.
As demand for affordable housing increases, a report released by Boston 2030 shows developers are starting to listen. According to the report, the first quarter of 2018 saw an average quarterly pace of production up to 107 middle-income units from 63 per quarter in 2016.
However, with more large high-end projects in the pipeline, including rentals at Pierce Boston now available, it remains to be seen if the market can continue to absorb this much luxury inventory.