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Boston is the third-hardest-hit apartment market in the U.S. while secondary markets such as Portland, Maine have seen recent rent gains, according to a new report.
High-cost markets experienced the biggest declines in August, with Boston rents down 2.5 percent on a year-over-year basis, Yardi Matrix reports. Boston’s decline was exceeded only by two other high-cost metros, San Jose and San Francisco, where rents declined 5.5 and 5.1 percent respectively.
The Massachusetts unemployment rate has been the nation’s highest for the last two months despite a slight downtick from June’s 17.7 percent figure to 16.1 percent in July.
Since the onset of COVID-19 in late winter, Boston apartment landlords also have to contend with a shrinking pool of off-campus college renters, who typically contribute to demand for middle-market apartments.
Nationwide, multifamily rents rose an average $1 to $1,463 in August, Yardi Matrix reported, the second straight month of growth since March. Among the 30 largest metros, Indianapolis led the nation with a 3.5 percent rent gain, while secondary markets fared even better. Portland, Maine rents rose 4.9 percent.
“These markets have benefited from lower population densities, affordable housing and the ability to attract tech talent,” the report said.
Boston rents are projected to decline 3.5 percent by year-end 2020, reflecting negative year-over-year employment numbers and new project completions that equate to 3.4 percent of the total market stock.
