Boston Apartment Prices Are Back On The Rise

Boston’s apartment rental market has gone on a wild ride over the past 2 years. Before the pandemic, rent prices were at all time highs while we experienced some of the lowest apartment availability on record. Boston had quickly ascended to one of the most expensive rental markets in the country as the local Metro population and student enrollment steadily grew. When remote learning went into effect in Fall 2020, it left thousands of Boston apartments vacant prompting landlords to slash prices to incentivize renters.

So at least for a little while, it was a renter’s market in Boston. In neighborhoods most affected by vacancies, like Downtown and Fenway, rent prices fell by as much as 20%. At one point in early 2021, as many as 80% of landlords were offering to pay all or part of the agent broker fee for new tenants. To put that in perspective, in a healthy market generally less than 5% of landlords offer to pay the fee.

The relief from high rent prices did not last long, as prices have already began to correct themselves since students descended on Boston for the Fall 2021 semester. Rent prices are still slightly down compared to November 2019, but they are currently trending upward. It appears that they soon will eclipse their pre-pandemic levels and we’ll be back to slim inventory and high prices.

The current average rent price in Boston is $2,584. That figure is down -2.89% since November 2019. Prices have come down more so for smaller units than larger apartments. Studio prices are down -6.27%, 1 bedroom Boston apartments dropped by -6.92%, and 2 bedrooms units have decreased by -2.68%. 3 bedroom and 4 bedroom apartments are up by a small margin (1.4% and 0.03% respectively).

Boston’s core neighborhoods have recorded the largest drop in average rent prices compared to pre-COVID levels. Charlestown (-10.25%), Bay Village (-9.47%), Downtown (-9.33%), Fenway (-7.37%), Back Bay (-6.79%), and South End (-5.56%) saw the biggest declines in average rent. These were also the neighborhoods where vacancies were the highest during the pandemic. Rent prices are actually up in some of Boston’s outer markets like Mattapan (+8.18%), East Boston (+7.38%), and Roxbury (+5.69%).

Current Boston apartment availability would suggest that prices will continue to push upwards moving into 2022. The apartment vacancy rate in Boston has just dipped under is pre- pandemic level indicating rental supply scarcity is as high as its ever been. Still, renters may be able to find some deals in the next few months before prices catch up to the apartment supply.