The spate of multi-family construction in the Boston Metro is bringing new units to market at a brisk pace. According to a report by Yardi Matrix, as published in Commercial Property Executive, about 15,000 units are in development. Investor interest Boston Metro multi-family properties remains high, with $300 million in multi-family assets traded during the first quarter of 2018.
Despite an increase in unit construction, rents grew by 2.1% on a year-over-year basis as of March 2018. According to Curbed Boston, the median monthly rent on a one-bedroom apartment reached $2,300 as of April 2018. Two-bedroom apartments reached a median rent of $2,700. Boston ranks 4th-highest nationally for one-bedroom units, and 6th-highest nationally for two-bedroom units.
With most units in development targeted for the luxury market, rents are unlikely to drop, even as housing supply expands. Rent growth is also supported by robust employment opportunities in the Boston Metro. Roughly 30,000 open positions were generated in recent months, largely from professional and business services, health care and education.
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