Wednesday, September 2, 2015

Both Demand and Rent Prices are on the Rise in Boston's South Suburbs

You don’t have to be an expert in the real estate industry to know that rents are rising in locations that are seeing peek demand. Economics 101: when demand is high, so will be the price. That couldn’t be a more fitting depiction of the multifamily apartment industry in the city of Boston, particularly in desirable places such as South Boston, Back Bay, West End, Beacon Hill, and the South End. It seems like every month a new large-scale luxury development is going up in the city. Rents in many of these new communities don’t start any lower than $3,000. With many young, post-college students struggling with a tough job market and burdened by large amounts of debt are finding it tougher to relocate to the city than generations past. So while rent within Boston remains far higher than any other neighborhood in the state, the actual largest amount of rent growth in the state is taking place in the South suburbs, a statistic that many find surprising.

Recently, Tim Logan of the Boston Globe wrote an article about the rise in both demand and price point in suburban locations south of Boston. At first glance you’re probably thinking the term “south” is rather vague. Well in fact this rent growth and demand spike can be seen although out south suburbs stretching from Quincy, down to Plymouth, and going as far west as Franklin and Bellingham. Logan cites quotes from regional executives that highlight those are who are priced out of the city and its immediate surroundings, are driving up prices in outlying markets in places such as Quincy and Dedham. Another outside factor is the growing hassle when it comes to commuting in the Greater Boston area. Many companies with centralized offices off of Route 128 or 495 are becoming more popular for job seekers as there is much less stress in commuting strictly suburb to suburb.

The numbers of rent growth and demand aren’t by any means surprising. Rather, they are just another local real estate trend to take note of it. Where we go from here, and what region will see this growth next, we shall see!



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