Rental rates up in Boston
Rental rates are up 6.4% year-over-year in 2012, reports Trulia. The median monthly rent for Boston is now a steep $2,400. Most brokers expect an increase in demand during the early months of the calendar year due to lease expirations from the previous year. However, there is some relief for individuals looking to lease a place soon says the Boston Herald. Broker Joseph Baglio of Back Bay Residential says, “This January, the rental market has loosened up a bit.”
If you are in the market for a luxury rental, vacancy rates are expected to be low. Leasing and marketing director of Devonshire apartment tower John Donovan predicts a 4% vacancy rate over the next two months. In fact, the incredibly high demand for state-of-the-art luxury apartments that keeps vacancy rates low has also lead to a flurry of new developments in the greater Boston Area including the NorthPoint development and Millennium Place. These full-service building, which include amenities such as indoor swimming pools, fitness centers, yoga studios, spas, etc. are currently in high demand. “Our Premium Collection currently has a vacancy rate of less than 3 percent, and we have a handful of two-bedroom apartments available ranging from $4,105 to $4,800 per month,” Donovan added.
However, not all buyers are in the market for the new steal-and-glass developments popping up around Boston. Frank Carrol, principal of Boston Realty Net, says that many still prefer the brownstone. In fact, he says the winter rental season has been more active than in years past with some apartments for next fall already leased. Especially in the Back Bay area, demand has been high this year.
All in all, signs point to low vacancy rates in Boston this year. For more on vacancy rates in and around the Boston area, check out this article on vacancy rates in 2012.