iStock photo

While U.S. rents dropped to the lowest levels in three years in December, Boston rents continued to creep upwards.

Rents in the commonwealth increased by 5.8 percent year-over-year to $2,660 according to Redfin. Outside of California and New York, Boston has the highest rents among the top 50 metros in the country.

While rents in Boston increased, nationwide asking rent fell 0.3 percent year over year in December to $1,594 which is the lowest level since March 2022. The median asking rent per square foot also dropped 1.9 percent year over year to $1.78. The median asking rent per square foot in Boston increased 1.4 percent year-over-year to $3.05.

“We’re kicking off 2025 in a renter’s market, with many renters finding that apartments cost less than a year ago,” Redfin Senior Economist Sheharyar Bokhari said in a statement. “While asking rents declined in 2024, they may not have much further to fall this year given that apartment construction has begun to slow.”

Redfin credits an inventory increase for reduction in prices nationwide. Apartment completions surged 58.1 percent year over year to the highest level since 1974 in the third quarter according to Redfin. As a result, the vacancy rate for buildings with five or more units rose to 8 percent, the highest since early 2021.

While rents also dropped across all bedroom counts, 0-1 bedroom apartments saw the greatest change with rents dropping one percent year-over-year to 1,449. This also saw asking rent per square foot reductions of 2.3 percent year-over-year to $2.05.