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Market Report

Boston Multifamily Investment Forecast

2022 Outlook

Metro Recovery Underway With More Room to Grow;
Class C Trades Drive Growth in Transaction Activity

Renter demand to normalize after last year's surge. Boston's employment market recorded workforce gains slightly above the national average last year after suffering acute pandemic job loss due to the region's relatively strict lockdown procedures. As conditions improved, many area universities ended remote schedules, bringing students and staff back to campus and increasing demand for both local student housing and nearby higher-end rentals used by faculty. Demand growth will taper in 2022 following last year's unprecedented display of renter enthusiasm and fall below a weightier construction pipeline. Builders are projected to finalize 5,800 new units by the end of the fourth quarter, ticking up from last year's eight-year-low delivery pace. Local policy decisions regarding the spread of COVID-19 variants may create additional hurdles in the path to full economic recovery. Boston's sizable education and health services sector, constituting the area's largest employers, is still a long way off from reaching pre-pandemic heights.
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