In the first quarter the rate for apartment vacancies nationwide fell as rent rates continue to increase—perfect time to purchase Boston condos and Boston luxury apartments to rent out. The vacancy rate for rentals dropped from 6.6% to 6.2% the first quarter according to Reis Inc’s report. This has apparently been the sharpest decrease since 1999 when this real estate firm began to track the real estate market. Employment rates have increased, particularly in the 20-34 year old range, which is fueling the increased demand for real estate in Boston. However, as many of those that are newly employed are younger, they cannot necessarily afford a down payment on a house, which is why they are turning to rental units such as Boston condos and Boston luxury apartments instead.
Reis’ vice president of research and economics, Victor Calanog, said, “All of those things are reflecting in the home ownership rate that is still somewhat declining, and it’s generally favoring the rental market.”
While renters have increased in numbers, the number of rental units available has not increased proportionately, making it a good time for landlords that are finding their Boston condos and Boston real estate in high demand. Rental rates may increase as a result, but as of right now rates remain somewhat stable. The average rental rate has only increased by .5% during the first quarter—averaging $991 per month.
If you’re in the market to rent Boston real estate or if you’re interested in purchasing Boston condos and Boston luxury apartments, contact us.