the Seaport District like Waterside Place is keeping rents
down
Looking for a place to rent in Boston? Now may be one of
the more ideal times to lease a property as rents have plummeted in
certain Boston neighborhoods.
Typically, the busiest time of the year when rental competition is
at its highest is around January 1st as well as September 1st,
especially given the fact that this is when many students and
individuals moving to Boston for work flood the
city. The improving economy and strengthening real estate industry
has driven prices up over the past two years to where rents were
having year-over-year increases by as much as 12% in the Hub. In
addition, the lack of inventory has made it increasingly difficult
for people to find a place to live, and this increased competition
has also cause prices to climb. While overall prices are still
bumping up in Boston, it is by only 1.9%
annually, however in some areas the opposite is true.
As it has been often reported, the massive movements
in the construction industry as of late has seen Boston essentially be
defined by cranes. From Downtown to the
Seaport District,
motions are in place to continue this progression to build far more
residential spaces that between now and the very near future will
see thousands of new homes become available on the market for sale
and for rent. As a result, apartment rents have actually fallen as
of late in these specific areas where the inventory levels are
growing the most. The CoStar Group reports that the Seaport District in
particular has seen rents drop by 9% in the Third Quarter of this
year due to the rising competition amongst new buildings to secure
tenants.
Mark Hickey, a real estate economist at the CoStar
Group shares that, The threat of the newer buildings coming to the
Seaport was enough
that landlords wanted to have lower rents there to maintain their
tenant base. Bostons tenant base is one
of the best nationwide. The vacancy rate across the city since 2011
has hovered between just 2-3%. Those developers tasked with
establishing a completely brand new, thriving Seaport District will
hope to bank on this statistic and that their buildings will soon
be bustling with tenant interest as well. As for now, Seaport rents are
down during this Third Quarter from $2,136/month on average during
this time last year, to $1,952/month this year.
In the Beacon Hill, North End, Charlestown, and
West End
neighborhoods, rents are also down from $2,256/month last year to
$2,133/month today. For the Back Bay and South End much is the
same, with rents only decreasing ever so slightly from $2,599/month
in Q3 of 2012 to $2,539/month this year. In the Fenway, the average
held at around $2,113/month annually, however in Chinatown and the
Financial District,
the rental levels were at their highest in the Hub coming in at
$2,961/month. Hickey notes that, Its clear that landlords pushed
rents as much as they could, but tenants are maxed out and rent
growth is now similar to peoples growth in incomes.
With the still developing economy, job market, and real estate
recovery, the incomes and confidence of the populace will also keep
strengthening. This dramatic boost in supply on every corner of
this area of Boston means that
competition is fierce among developers to get their buildings
filled. With that said, the key is to locate budding areas as such
that are being built today for a more prosperous tomorrow if a deal
is to be sought on an apartment for rent.
More Information: Boston Business
Journal