South Boston Rental Market Forecast 2023
Based on the current apartment inventory in South Boston and elsewhere in the metro area, it’s hard to see a path where rent prices go down in 2023. Despite a sluggish economy, rampant inflation, and poor energy policy from the current administration, demand for South Boston apartments has yet to show signs of slowing. Perhaps a tenth rate hike might be all it takes, but it is too early to tell. The various bank meltdowns we witnessed over the past couple weeks has made it difficult to feel like we are sitting on firm economic ground.
Overall, we do not expect prices to trend downwards in South Boston over the next few months. It’s a tough call to say we are 100 percent certain in our forecasting with all the noise in the equation lately. With interest rates rising, it may even push more people towards renting, which could put more pressure on the already limited supply of apartments in Boston. Look for rent prices to most likely continue to slowly rise in 2023 in South Boston, albeit at a much lower margin than the past year. There could be storm clouds in our economic landscape that could change this forecast rather quickly.
If the struggling national economy begins to affect our local economy in Boston, that could alter our outlook considerably for the second half of 2023. We keep hearing rumors of large corporate layoffs looming here in Boston. If our various tech, medical and finance sectors start to tank we could see rent prices trend downwards quite quickly. South Boston is heavily weighted with professionals in all facets of our faster growing and highly paid industries. For now, we are not seeing a lot of lease breaks in South Boston due to job loss, but it could be a potential long-term threat if we can’t get the economy to function at optimal levels. We will continue to monitor these trends as they develop.
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