Boston Area Multi-Family Market Report for Q1 2024


Boston’s multifamily market is experiencing a period of adjustment. While vacancy rates are rising due to slower demand, the pace of new construction is stabilizing. This suggests a return to a healthy balance may be near.

Demand has fallen significantly from its pandemic peak, with absorption averaging around 1,500 units per quarter over the past year. This is significantly lower than historical averages. However, certain submarkets like Somerville/Charlestown and South Shore have seen stronger demand.

Despite the slowdown, Boston’s vacancy rate remains well below the national average. While rents have cooled from double-digit growth to 2.7%, this still outpaces the national average. This relative strength has helped maintain investor interest in the market, with sales exceeding the 10-year average.

Looking ahead, vacancy rates are expected to reach a peak soon before gradually stabilizing. Rents are likely to see continued moderation, and cap rates may rise further. However, Boston’s strong fundamentals and lower vacancy compared to the nation could make it an attractive market for multifamily investors.

Ready to navigate the evolving Boston multifamily market? Contact ABG Commercial Realty today. Our team of experts can help you identify and capitalize on the best opportunities.

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