Yardi Matrix: Boston Surge
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Boston rent growth, click image to enlarge
Although the Northeast is lagging behind the growth of other U.S. regions, Boston does not seem to have gotten the memo. Boosted by the city’s robust science, research and healthcare sectors, the multifamily market is experiencing some of the strongest rent and price appreciation seen there to date, while inventory is expanding rapidly. Vacancies continue to dwindle, and the volume of multifamily investment grew an explosive 165% year-over-year.
Boston’s economic profile is sustained by its roster of major universities that provide a young, highly skilled labor pool for its blossoming business segment. The city is one of the nation’s biggest recipients of venture capital funding; however, it is challenged to accommodate those who wish to live in the metro, as home prices are shooting up because new supply cannot keep up with demand, particularly in the suburbs…
