New development of apartment complexes throughout the Boston Metro Area have caused tenants to hope for softening rent prices in the future. With thousands of residential units expected to become available by 2015, will Boston see a slowdown in rental demand?
According to apartment predictions by RentHop, the Boston Metro Area has the elements needed to sustain demand. Here are select opinions recently published on BostInno, with my own thoughts added.
1. New York City, Boston and Chicago are in the midst of economic recoveries that will escalate rental demand as well as monthly rental costs. Markets with a higher cost of living will have the highest rent increases.
Rental predictions by real estate analysts echo this sentiment. Rents are expected to increase nationwide during 2013, as pent-up demand is freed with an improving economy. Households that doubled-up during the recession are eager for elbow room, and emboldened employees are making job changes.
As long as the economy in the Boston Metro Area remains progressive, the number of apartment units under construction will be readily absorbed.
2. Popular urban areas will become more dependent on property brokers as tenants compete for units.
I couldn’t agree more. The “hunt and peck” method is not an effective way to find residential or commercial real estate! You can spend countless hours doing your own search, only to find that the property has already been leased and the online ad has not yet been updated. This is usually after you have waded through a score of listings that were unsuitable for your needs.
To sum it up, demand for both residential and commercial real estate in the Boston Metro Area is expected to gain momentum throughout 2013. Barring economic upheaval, we should see sustained demand well into the future. The caution shown by developers has kept the pace of new construction modest to date; new development has lagged behind demand.
In the meantime, the largest market uncertainty remands in the Federal budget policy; we must acknowledge that any large-scale cuts in government spending could change the economic landscape. By how much, and to what degree, depends on the extent and nature of any cuts. Businesses must be able to adapt to fast-changing economic influences. Being smart about your commercial space and expenses is essential!
If you are making plans to relocate, begin, or expand your business in the Boston Metro Area, I will be happy to help you! With just a few details from you, I will perform a cost analysis of the square footage, location and type of building you are looking for. As your experienced commercial real estate agent in Boston’s Metro area, I will provide you with excellent options for property leases and purchases!
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