Boston Multifamily Market Report

Continued housing shortage contributes to revenue gains. While rent growth will ease from double-digit territory this year, rates are expected to rise at a faster pace than the annual decade-long average as vacancy remains tight. The ongoing employment recovery should mitigate upward vacancy pressure, keeping availability hovering near previous record lows. Boston's traditionally light urban pipeline also faces headwinds generated by the life sciences industry. Builders servicing this segment often outbid multifamily projects for prime parcels near the core, complicating development in the CBD; however, legislative shifts targeting suburban zones could alleviate tight vacancy.