In many metropolitan areas in the United States, rents have declined over the past year, particularly in areas with a large number of new apartments.
Not Greater Boston.
According to a new monthly rent tracker, rents in this housing-stricken region have become more expensive in almost every municipality over the past year. launched by the Globe, which compares rental trends at a local level.
The tracker relies on data from rental listing website Apartment List, which provides snapshots of average monthly rents for one- and two-bedroom apartments in various communities. The data is based on a combination of the website’s database of apartment listings and census data.
Here are the latest rent growth trends for different types of apartments in Eastern Massachusetts.
And while rents have risen everywhere, the increase has been faster in some parts of the region than in others, particularly in the more affordable suburbs and cities outside of downtown Boston.
As rents in Boston and surrounding communities have risen to unaffordable prices, more and more renters are seeking lower costs and often more housing by moving farther away from the city. But while they may be getting a bargain compared to their hometown, they can generally afford to pay more than long-time residents typically pay, effectively driving up rents. The rise in remote work during the pandemic has also contributed to this shift.
That’s a big reason why Waltham has seen the fastest rent growth over the past year. The median rent for a one-bedroom apartment there was $2,104 in July, up 3.5 percent from the previous 12 months.
In the state’s most expensive communities, such as Cambridge and parts of Boston, rent growth has been much slower.
Still, the fact that rents have risen here is a sign of how serious the area’s housing shortage has become. While rents have fallen nationwide, the lack of supply in Greater Boston has driven up demand here and pushed up prices. One key difference between Greater Boston and regions where prices have fallen is the speed at which new supply has come online.
Boston experienced a permitting boom in 2021, but construction activity is slowing significantly and the permitting rate for new residential projects is at its lowest level in over a decade.
It also doesn’t help that the rise in interest rates over the past two years has discouraged many potential homebuyers from purchasing a home, which has increased demand in the rental market even further. This dynamic is seen across the country, but it’s particularly pronounced here because rental prices are so high and the Boston metropolitan area has one of the lowest vacancy rates in the U.S.
Andrew Brinker can be reached at [email protected]. Follow him @andrewnbrinker. Andrew Nguyen can be reached at [email protected]. Follow him @onlyandrewn
