Boston Multifamily Report – February 2023

While transactions kept up the pace, rent growth and the pipeline took a hit.

Boston rent evolution, click to enlarge

Boston rent evolution, click to enlarge

Boston’s multifamily fundamentals moderated in 2022, especially during the fourth quarter. Rents marked the second consecutive month of negative growth on a trailing three-month basis in December, down 0.6 percent to $2,655, while the U.S. rate declined 0.2 percent to $1,715. Still, the metro’s rental market remains among the tightest in the country, with the occupancy rate in stabilized properties at 96.4 percent, following a 40-basis-point decline year-over-year as of November.


Boston sales volume and number of properties sold, click to enlarge

Boston sales volume and number of properties sold, click to enlarge

The unemployment rate in Boston was 2.7 percent in November, a significant improvement from the 4.4 percent rate registered in January, but still above pre-pandemic values, according to data from the Bureau of Labor Statistics. The state’s unemployment clocked in at 3.4 percent in November and the U.S. rate stood at 3.6 percent. The job market posted a 4.2 percent expansion year-over-year as of October, leading the national rate by 10 basis points. Growth moderated in 2022, but remained steady in the 4 percent to 5 percent band, and despite the sustained performance, Boston has yet to recover all jobs lost during the pandemic.

Boston: Photo by Deejpilot/

Boston. Image by Deejpilot/

Deliveries totaled 5,468 units in 2022, declining to the lowest volume since 2015, heavily favoring the Lifestyle segment. Some 15,400 units were underway, posting a sharp drop in the number of construction starts. Meanwhile, investment volume amounted to $3.3 billion, and the price per unit decreased 2.3 percent, to $382,575.

Read the full Yardi Matrix report.

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