Key Highlights:
- The Boston apartment vacancy rate was tighter than the U.S. average, with the rate in several submarkets near the downtown core at 3.0% or less.
- Rent growth also outpaced the national average, supported by improved demographics and a consistent level of new supply. Downtown rent growth, however, was limited as renter preferences shifted, in part because of remote work schedules.
- The level of construction remained constant, reflecting a lack of developable land, zoning constraints, a lengthy entitlement process, and elevated construction costs.
- The 12-month rolling transaction volume increased to nearly $4.3 billion in November 2024, 24% higher than a year prior.
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Additional Insights:
The Boston apartment market was strong through the final months of 2024. Increased tenant demand from strengthening demographic trends and long-term structural factors, in combination with a stable apartment pipeline, supported operating metrics. Operating conditions were notably stronger than the national average. Looking ahead, the Boston apartment market should continue to outperform many major markets as the factors that positively affected the market in 2024 persist into 2025.
