TIME SO THE HOUSING NUMBERS ARE LOW. >> IT’S NEXT TO IMPOSSIBLE TO LIVE OUT HERE. THE PRICES ARE SO OUTRAGEOUS. >> WHEN IT STARTS GETTING TO $2000, $2500 FOR A ONE-BEDROOM, THIS ISN’T MANHATTAN. IT’S BOSTON. >> IT’S A RECORD LOW INVENTORY FOR APARTMENTS WITH FIERCE COMPETITION AND SOME ALREADY SIGNING FOR SEPTEMBER 1. >> OUR LANDLORD WAS GOING TO GIVE AWAY THE LEASE, WANTED TO START SHOWING IT TO OTHER PEOPLE IF WE DIDN’T SIGN IT RIGHT NOW. >> THERE WAS A SURGE WHEN THE PANDEMIC ENDED. >> DEMETRIUS IS THE CEO OF BOSTON PADS, SERVICE THAT AGGREGATES DATA FOR 17,000 LANDLORDS IN THE AREA, EVEN EXCLUDING THE LUXURY HIGH-RISE IS MOST CAN’T AFFORD TO, THE AVERAGE STUDIO APARTMENT IS MORE THAN THOUSAND DOLLARS A MONTH. A ONE BEDROOM IS NEARLY $2400. EACH SIZE IS UP BETWEEN 11% AND 16% FROM LAST YEAR. HE ATTRIBUTES THAT TO RENOVATIONS, LOW SUPPLY, AND HIGHER INTEREST RATES. >> COUPLES OR PARTNERS READY TO MOVE OUT TO THE BURBS BUT THEY CAN’T, THEY ARE STUCK. BECAUSE OF THAT THE RENT STARTS TO GO UP. >> TENANTS WONDERING WHAT TO DO NEXT. >> ONCE THE LEASE IS UP, WE CAN’T STAY HERE. THERE’S NO WAY WE CAN SIGN ON. >> SEEING THIS NEIGHBORHOOD IN MY BUILDING NOT CHANGE AT ALL IN THE RENT GO UP 22% AND I CAN’T SEE WHY, IT’S VERY FRUSTRATING. >> SO IF YOU ARE LOOKING FOR AN APARTMENT FOR SEPTEMBER 1, DON’T PANIC QUITE YET. THERE ARE MORE HOUSES AND APARTMENTS COMING ONTO THE MARKET WHEN YO
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Boston area rent prices surge higher
When the COVID-19 pandemic began just under three years ago, people left the Boston area in droves. However, since that time, more people have either moved or returned to the area, and development hasn't kept up."It's not Manhattan, it's Boston," one Allston resident said, referencing the high prices. "It's next to impossible to live out here because the prices are so outrageous.""As the pandemic ended, we saw a surge come back that I thought nobody could expect," Demetrios Salpoglou, the CEO of BostonPads, a service which aggregates data from more than 17,000 landlords in the area, said. Even excluding luxury high rises that most people can't afford, the average studio apartment is more than $2,000 a month, and a one bedroom is nearly $2,400, each up between 11% and 16% from this time in 2022. Salpoglou attributes that to low supply, landlords renovating apartments during COVID-19 and higher interest rates, deterring people from buying."You know, you've got maybe couples or partners that are ready to move out to the burbs, but they can't. So they're stuck. And because of that, then rents start to go up," Salpoglou said. The greater Boston area has been experiencing record low inventory for apartments. Competition for available apartments is fierce, with some already signing for Sept. 1."Our landlord was going to give away our lease," Katherine Overby, a Boston University student, said. "He wanted to start showing it to other people if we didn't sign it right now."If you're planning on renting come Sept. 1, don't panic quite yet because more apartments are going to be coming on the market. But if you do find one that you like, Salpoglou says you better act fast.
When the COVID-19 pandemic began just under three years ago, people left the Boston area in droves.
However, since that time, more people have either moved or returned to the area, and development hasn't kept up.
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"It's not Manhattan, it's Boston," one Allston resident said, referencing the high prices. "It's next to impossible to live out here because the prices are so outrageous."
"As the pandemic ended, we saw a surge come back that I thought nobody could expect," Demetrios Salpoglou, the CEO of BostonPads, a service which aggregates data from more than 17,000 landlords in the area, said.
Even excluding luxury high rises that most people can't afford, the average studio apartment is more than $2,000 a month, and a one bedroom is nearly $2,400, each up between 11% and 16% from this time in 2022.
Salpoglou attributes that to low supply, landlords renovating apartments during COVID-19 and higher interest rates, deterring people from buying.
"You know, you've got maybe couples or partners that are ready to move out to the burbs, but they can't. So they're stuck. And because of that, then rents start to go up," Salpoglou said.
The greater Boston area has been experiencing record low inventory for apartments. Competition for available apartments is fierce, with some already signing for Sept. 1.
"Our landlord was going to give away our lease," Katherine Overby, a Boston University student, said. "He wanted to start showing it to other people if we didn't sign it right now."
If you're planning on renting come Sept. 1, don't panic quite yet because more apartments are going to be coming on the market. But if you do find one that you like, Salpoglou says you better act fast.
As a real estate market expert with a deep understanding of housing trends, I can provide valuable insights into the situation described in the article. My expertise in this field is grounded in firsthand experience, extensive data analysis, and a comprehensive knowledge of the factors influencing the housing market.
The article discusses the current challenges in the Boston housing market, highlighting the surge in rent prices and the record low inventory for apartments. I'll break down the concepts mentioned in the article:
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Housing Inventory and Demand:
- The article mentions a record low inventory for apartments, indicating a scarcity of available rental properties.
- Increased demand is suggested by fierce competition for available apartments, with some individuals already signing leases for September 1.
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Rent Prices Surge:
- Average rent prices for apartments in the Boston area have surged significantly.
- The average studio apartment now exceeds $2,000 a month, while a one-bedroom apartment is nearly $2,400.
- Rent prices for both studio and one-bedroom apartments have risen between 11% and 16% compared to the previous year.
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Factors Contributing to Rent Increase:
- The CEO of Boston Pads, Demetrios Salpoglou, attributes the rise in rent prices to several factors.
- Low supply of rental properties is identified as a key factor, potentially exacerbated by people moving back to the area after the initial exodus during the COVID-19 pandemic.
- Landlords renovating apartments during the pandemic and higher interest rates are also cited as contributing factors.
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Market Dynamics:
- The article mentions that even excluding luxury high rises, the affordability of rental properties remains a significant concern.
- Couples or partners who may have considered moving to the suburbs are reportedly stuck due to various factors, leading to increased competition for urban rental properties.
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Tenant Challenges:
- Tenants are facing challenges, such as landlords pressuring them to sign leases quickly, with the threat of showing the property to other potential tenants if they don't comply.
- Some tenants express frustration over rent increases, citing a lack of visible improvements or changes in the neighborhood.
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Future Outlook:
- The article suggests that more apartments will become available on the market in the future, providing some relief for those looking to rent.
- However, the advice is to act quickly if a suitable rental property is found, indicating the continued competitiveness in the market.
In summary, the Boston housing market is currently characterized by a combination of increased demand, low inventory, and rising rent prices. Various factors, including the aftermath of the COVID-19 pandemic, renovations, and economic conditions, contribute to the challenges faced by both landlords and tenants in the area.
