MARKET SNAPSHOT
Boston’s apartment supply growth has remained steady, closely tracking its long-term average in recent years. In 2024, nearly 7,200 new units were delivered—representing 2.6% of total inventory—consistent with historical trends. Another 7,000 units are slated for completion in 2025, maintaining a pace of inventory expansion in line with the market’s historical mean.
Currently, 16,000 units are under construction, equating to 5.5% of total inventory. While this aligns with the five-year average, it remains roughly 20% below the peak development activity seen in late 2018. As a result, supply growth is expected to remain measured, reinforcing stable multifamily fundamentals in the near and midterm.
Steady leasing activity over the past few quarters has placed upward pressure on occupancy in Boston’s multifamily market, supporting rent growth and driving a 10-basis-point increase in average occupancy year over year in Q4 2024. With a more measured pace of development in recent years, occupancy rates are expected to remain stable in 2025, with only minor fluctuations. Overall, Boston’s multifamily fundamentals are finding balance, positioning the market to maintain its traditional strength among the nation’s top metros.
At 2.3%, year-over-year effective rent growth in Boston outperformed the national average of just 1.0%, ranking among the highest in the nation’s 25 largest multifamily markets by unit count—further underscoring the city’s resilience. Rent growth is expected to accelerate through late 2025, as Boston’s supply pipeline remains more balanced compared to many Sun Belt markets facing oversupply pressures. As a result, rents are projected to approach the long-term historical average of 3.0%, ending 2025 at an estimated 2.9%.
12-month period ending November 2024
Boston’s multifamily market remains resilient, with steady supply growth, strong leasing activity, and solid rent performance. In 2024, nearly 7,200 new units were delivered, accounting for 2.6% of total inventory—consistent with historical trends. Another 7,000 units are expected in 2025, while the 16,000 units currently under construction equate to 5.5% of inventory, about 20% below the peak seen in late 2018. This measured pace of development has helped maintain market stability, with occupancy rising 10 basis points year over year in Q4 2024. Looking ahead, occupancy rates are expected to remain steady, with only minor fluctuations, as supply growth remains balanced.
Boston’s rent growth has also outpaced the national average, with effective rents rising 2.3% year over year in 2024, compared to just 1.0% nationally. This growth ranks among the highest in the country’s top 25 multifamily markets by unit count. With the supply pipeline posing fewer risks than in many Sun Belt markets, rent growth is projected to accelerate toward the long-term historical average of 3.0%, ending 2025 at 2.9%. As market fundamentals continue to stabilize, Boston is well-positioned to retain its status as one of the nation’s strongest and most resilient multifamily markets.
Disclaimer: This multifamily forecast incorporates data from reputable third-party sources, including Costar, Yardi Matrix, the U.S. Census Bureau, the U.S. Bureau of Labor Statistics, and ESRI. While we make every effort to ensure accuracy, we cannot guarantee the reliability of the projections provided. Forecasts are inherently subject to change due to evolving market conditions, economic factors, and unforeseen events. We strongly encourage users to conduct independent due diligence and consult with an MMG Advisor before making any investment decisions based on this information.
