Colliers 22Q4 Report: Boston Apartment market Vacancies End 2022 at 5.3%
Despite some ongoing challenges that have impacted the Boston multifamily market, there are still bright spots, as reported in the Boston, MA Multifamily 22Q4 report from diversified professional services and investment management company Colliers.
*Apartment market vacancies are healthy, ending 2022 at 5.3%. Although better than the 10-year average, the rate is also about 90 basis points worse than year-ago levels, since new construction outpaced demand last year. However, increased mortgage rates are currently creating higher hurdles to enter the for-sale market.
*With vacancies inching up and a ton of new competition, landlords are no longer pushing rents the way they were in 2021 and early 2022. Increasing mortgage rates are creating higher hurdles to enter the for-sale market, likely bolstering occupancies. Several factors could dampen multifamily demand in 2023, the most important being that if the job market stalls, leasing prospects will dim.