Boston Multifamily Market Strengthens as Job Market Returns to Annual Growth

The Boston multifamily market strengthened in the second quarter of 2026 as the local job market returned to annual growth for the first time in two years, Northmarq reported. The stronger footing showed up quickly in leasing activity, with tenants absorbing apartments at a faster pace than developers completed them, tightening vacancy and giving landlords room to push rents higher.

Vacancy tightened across every asset class in Q2, led by a 30-basis-point improvement in Class B occupancies, according to Northmarq’s Greater Boston multifamily market overview. The metro-wide vacancy rate declined to 4.9%, down 20 bps from Q1, albeit still 10 bps above year-ago levels.

Since the start of Q1, which got the Boston multifamily investment sales market off to a strong start, buyers have gravitated toward smaller, older properties outside the urban core, Northmarq reported. For the balance of 2026, operating fundamentals are expected to improve, although at a measured pace.

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