Market Report
Boston Multifamily Market Report
1Q 2026
Housing Shortage Remains a Concern Amid
Economic Uncertainty, Boding Well for Apartment Demand
Stable absorption and tight vacancy underscore multifamily momentum. Boston recorded its strongest net absorption since 2021 last year, driving a notable decline in vacancy, despite the delivery of 8,000 units metrowide. While cuts to university research grants and a sustained drop in international student enrollment may weigh on renter demand in 2026, Boston’s population growth continues to outpace other Northeastern metros, offering some resilience. Ongoing housing affordability challenges will also aid property performance, specifically in the Class C sector, where vacancy is expected to remain tightest in 2026. Meanwhile, citywide zoning reforms — particularly the MBTA Communities Act — are facilitating rental development in first-ring suburbs with vacancy rates of 4 percent or lower, such as East Middlesex County, Quincy, and Waltham-Newton-Lexington. Downtown Boston and Cambridge will maintain similarly low vacancy in 2026, underscoring the enduring strength of the core. Combined, these fundamentals point to a stable near-term outlook for Boston’s multifamily sector.
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