Apartment rents in the Boston Metro saw a rare decline in 2020, with a report by Boston Magazine citing a 17% drop in monthly rents. While this is certainly a concern for property owners, the long-term outlook for Boston’s multi-family sector remains positive.
In the near-term, however, Boston Metro rents could see further decline. Work-from-home arrangements have enabled scores of office workers to relocate out of the city. College students remain off-campus in most instances. These trends are raising Boston’s outward migration rate for the time being.
Yet the housing supply in the Boston Metro is limited. As demand pushes up apartment rents in suburban markets, urban apartments will appear competitively priced. Also, once the pandemic is less of a concern, the return of world-class cultural events, festivals and night life will draw residents back to the city.
Meanwhile, the life sciences sector continues to boom in Boston, which helps support long-term housing demand. If Boston Metro colleges and universities resume in-person classes in the fall of 2021, we could see improvement in the multi-family sector within several months.
Boston weathered the Great Recession better than many other metropolitan areas. We can therefore expect Boston Metro commercial real estate to prove resilient to today’s challenges in the long run. Getting through the upcoming months will require patience and financial flexibility on the part of property owners and investors.
When you are ready to begin, relocate or expand your business, team up with the Jay Nuss Realty Group, LLC! Whether you are thinking of buying, leasing, or investing in Boston Metro commercial real estate, we can help you find the ideal property.
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