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A wave of deliveries is weighing on market fundamentals. After more than 8,000 units delivered since the beginning of 2022, apartment vacancies in metro Boston increased from 4.2% to 5.6% over the past year. The almost 17,000 units in the pipeline may increase vacancies further as new complexes deliver. Given this backdrop, rent growth has come back down to earth — asking rents have remained relatively flat over the past year.
Macroeconomic circumstances have, thus far, generally supported apartment demand growth. Rising mortgage rates have reduced for-sale housing affordability, leaving many households still renting. The Boston metro economy has also continued to generate new jobs, a key driver in apartment demand, while households are benefitting from low unemployment and increasing wages. Positive absorption has persisted; however, any deterioration in the local job market could subdue demand growth.
SOURCE | https://www.colliers.com/en/research/boston/2023-q1-multifamily-market-report-boston-colliers
