Boston Multifamily Market Report

Sturdier Class A performance encourages development. Apartment vacancy rose across the quality spectrum over the past 12 months ended in March 2024. The luxury tier’s 30-basis-point year-over-year increase nevertheless stood out amid 70-basis-point climbs in both the Class B and C segments. That imbalance resulted in Class A vacancy sitting 20 basis points under the mid-tier rate in March, the first time that has happened during a first quarter since 2013. This serves as an optimistic sign for lease-up momentum of new deliveries, which is crucial as this year’s pipeline is the second largest on record. Sound occupancy metrics also allowed the average effective rent in Class A units to grow by 4.5 percent year-over-year, the second-fastest hike among major U.S. metros. Areas with below market average luxury tier vacancy and strong segment rent growth include Intown Boston and Rockingham-Strafford Counties.