Softening Fundamentals Across Market
Boston’s multifamily fundamentals softened at the end of the third quarter, as seasonal slowdowns began, according to the latest Yardi Matrix Boston multifamily market report. Advertised asking rents were down 0.2% on a trailing three-month basis, to $2,901, some 20 basis points lower than the U.S. rate. Boston placed third nationwide for year-over-year growth, up 3.4%, above the 0.9% national figure. The occupancy rate in stabilized properties stood at 96.6% as of September, above the 94.8% U.S. average, as noted in the national multifamily report.
In the 12 months ending in July, Boston’s employment market gained 37,900 jobs, expanding 0.6% year-over-year. Education and health services led gains, with 21,900 new positions. The metro’s unemployment rate was 4.3% as of August, 10 basis points above the national rate, according to the Bureau of Labor Statistics. The local economy could get a boost from the construction of a life science and advanced manufacturing campus in Bedford, Mass. The first phase came online in October, while the second one is slated for groundbreaking in 2025 and completion in 2026.
Developers completed 4,462 units in the first three quarters, a 1.6% expansion of existing stock, lagging the nation by 50 basis points. Transaction activity remained moderate, with $1.3 billion in assets changing hands year-to-date through September. For comparison, the metro recorded an average of $2.2 billion in deals over the past 10 years.
Read the full Yardi Matrix Boston Multifamily Market Report: November 2024
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