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Class A Apartment Sector Shows “Remarkable Resilience” in Boston
Luxury tier apartment vacancy in the Boston market rose by only 30 basis points year-over-year, contrasting with 70-bp increases in both Class B and C segments, Marcus & Millichap said Wednesday. This places Class A vacancy 20 bps under the mid-tier rate, a first since 2013. The segment’s effective annual rent growth of 4.5% makes Boston the second fastest growing for Class A among major U.S. metros.
“The luxury tier’s performance has shown remarkable resilience,” as illustrated by the relatively low vacancy rate, said Evan Griffith, SVP investments in Marcus & Millichap’s Boston office. “This signals a strong lease-up momentum for new deliveries.”
However, the firm’s second-quarter Boston Multifamily market investment report noted that the high volume of new units, particularly in Cambridge-Somerville and Fenway-Brookline-Brighton, may present short-term challenges despite overall positive rent growth and occupancy metrics. The market expects to see more than 9,000 new rentals completed in 2024, pushing inventory growth to 2.2%.
- ◦Lease
- ◦Development
