This trend has been prevalent all across the metro region this year. As rent prices decline nationwide, they are still on the rise in Boston due to the complete lack of inventory. There is no end in sight for the current supply shortage, which means it is hard to see any scenario where rent prices turn downwards in Back Bay or elsewhere in Boston.
Back Bay Apartment Rental Market Forecast 2023
Based on current local economic factors, Back Bay’s average rent price will continue to climb throughout the remainder of 2023. Price growth may decelerate towards the end of the year, but prices are unlikely to turn downwards barring an economic collapse in Boston’s local economy. For now, local unemployment is low and housing demand remains high, which will continue to fuel rental price growth.
It appears that Back Bay is moving away from the seasonal turnover that is prevalent in many of Boston’s student neighborhoods. Both RTAR and RTVR have flattened out in the past two years compared to the years prior to the pandemic. Back Bay’s rising rent prices have likely diminished demand from Boston’s student population. This could be a trend to look out for in the months and years to come.
