The 394-unit Beverly Crossing Portfolio on Rantoul Street recently sold for $162 million, or $405,000 per unit, to The Praedium Group, a New York private equity investor. Photo courtesy of CBRE

Apartment rents shattered another barrier in Greater Boston, reflecting the steep downturn in construction of new developments since 2022.

Average asking rents hit $3.23 per square foot in the first quarter, brokerage Colliers reported, up from $3.16 at the end of 2024. The vacancy rate declined 0.1 percent to 5.8 percent.

Construction activity is hovering at a decade-low long, with just over 11,000 units under construction at the end of the first quarter. That’s 36 percent below the post-COVID era peak in mid-2022, Colliers reported. As a percentage of the region’s overall inventory, new construction comprises 4.4 percent.

Financing challenges and elevated development costs show no signs of abating, Colliers researchers wrote in the report.

In Boston, asking rents increased 2 percent year-over-year in the urban core, led by a 4 percent increase in Back Bay/South End. Allston-Brighton’s inventory has increased 8 percent in the past year, including The Davis Companies’ 1515 Commonwealth Ave. project which has a 151-unit rental component. Average asking rents in Allston-Brighton rose 3 percent from the previous quarter.

Boston’s Seaport District maintains the region’s highest asking rents at $5.89 per square foot.

“Sound fundamentals should elevate landlords’ leverage as construction continues to slow, allowing recently delivered projects to progress through lease-up,” the report states. “However, local economic drivers, affected by underperforming job growth, potential funding losses at major employers, and lowered consumer confidence, could threaten demand in a period of uncertainty.”