Image courtesy of Boston Realty Advisors
As the prevalent September lease rollover date approaches, Boston renters could see some relief for the first time since the pandemic.
Online listing service BostonPads places the average Boston rent at $3,265, a 5.6 percent increase over the past year. But rents have been decelerating since February, rising just 1.8 percent.
“This is welcome news for Boston renters who have endured exorbitant rent prices and slim inventory over the past 24 months,” CEO Demetrios Salpoglou wrote in a recent mid-year market update.
A downward rent trend is already materializing in many U.S. metros, according to research by brokerage Avison Young. Rents declined in nearly 43 percent of the metros in the past 12 months, primarily in the Sunbelt.
In Boston, potential increases in unemployment would drive turnover and additional concessions, according to BostonPads. Landlords are already offering concessions as the Sept. 1 lease turnover date approaches, particularly for higher-end units.
Research by multifamily-focused commercial brokerage Berkadia estimates 3,787 apartments have delivered across the Greater Boston market this year through June 30, with 8,710 expected to deliver by the end of the year.
A national housing boom is moderating rents in many metro areas, Zillow reported this week. In June, builders completed nearly 60,000 multifamily units, the highest level for any month since 1973, the online listing service said.
Boston renters largely have been left out of a tenant-friendly trend in many cities, according to Zillow research. The region’s rents have risen faster in the past year than all but 10 of the 50 metro markets surveyed by Zillow.
Boston rents rose 4.2 percent over the past year to $3,057, compared with the U.S. average of $1,916 and a 2.6 percent increase.
A steady decline in multifamily construction throughout the region points to longer-term rent escalation. Executives from AvalonBay Communities and Equity Residential said this month they anticipate rent increases driven by the construction slowdown and higher-than-anticipated summer leasing demand.
