Boston Multifamily Q2: Robust Demand with Growing Inventory
Boston multifamily market experiences robust demand in the second quarter, reflected in healthy occupancy rates and a growing unit inventory, according to Colliers Boston 23 Q2 Multifamily Report. Over the past year, occupied units increased by 5,000 (2.3%).
This quarter saw strong absorption in Class A properties, and compliance with MBTA Communities legislation may fuel new development prospects.
Vacancies declined in Q2 due to high absorption, maintaining the overall vacancy rate at 5.4%, slightly below the 10-year average.
The supply pipeline includes over 16,000 units, about 7% of inventory, primarily in Class A. Vacancy in top-tier properties (5.2%) is higher than mid- or lower-quality assets. Class C assets have a low vacancy rate at 2%, benefiting from a stable tenant base.
Emily Fu is Content Director of Connect Commercial Real Estate, where she covers the east coast markets, including New York, Boston & New England, and DC & Mid-Atlantic markets. She produces daily news stories as well as longer-form content, ranging from Q&As to thought-leadership pieces. She also writes feature stories for Connect Money.
With previous stints at Reuters, Seeking Alpha, and Commercial Observer, Emily has covered the finance side of the commercial real estate industry, technology, media, telecom (TMT), and fashion. She attended the Columbia Graduate School of Journalism and currently resides in Manhattan.