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.