February 11, 2020
Boston’s multifamily sector has been fueled by its strong economy which, in turn, is fueling robust rent growth and development, according to reports from Marcus & Millichap and Colliers International.
“Massachusetts is currently at 2.9% unemployment and wage growth is fueled by industry competition,” says Colliers. “Since 2010, Boston has added one new resident per hour to its population,” leading to “feverish demand for new residential units.”
Marcus & Millichap reported that asking rents have increased by 16% over the past three years on the strength of heightened leasing activity, a rising tide that has lifted all apartment classes.
“This year, rising demand will fill more units than the number projected within the 2020 construction pipeline, which will be the largest apartment delivery recorded in the metro over the past two decades,” says Marcus & Millichap. In the short term, that could lead to an uptick in concessions, the firm says.
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