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Which direction will Boston rents go?

Which direction do you think apartment rents will be heading in the next 6 – 12 months?

Some may argue that people are not going to be buying Boston condos in the near future thus rents will rise. By staying in their apartments longer, these would-be buyers will push up demand and rents. Others might feel that rents will rise but for a different reason,  which is the Boston economy is going to improve in the next 6 -12 months which will increase the Boston population thus rents will rise.

The Boston Globe recently had an article that Boston area rents have risen 4.2% over the past year.

On the flip side, the Boston Redevelopment Authority (BRA) issued a “Boston Economy 2008″ report. In the report itself it stated, that five lower-income neighborhoods rents actually went down as much as -8% in the past year.

The argument that rents will go down is fueled by the belief that people are losing their jobs and are moving back in with parents or in with roommates. This would make more apartments available and thus lower rents.

What are your thoughts? Are Boston rents going to rise or fall in 2009?

4 Responses to Which direction will Boston rents go?

  • My bet is with option #1. I have a lot of clients that are moving to the city and plan to rent for a year, then buy a place when they are familiar with Boston.

  • I know at least 5 people who have been laid off. Shawmut Construction in the South End just whacked at least 50 people. A lot of people are scared. I don’t think this is the kind of environment where rents go up.

  • I live in a renovated triple Decker in South Boston.

    Floor 2 and 3 have been vacant for months since the last tenets moves out.

    It’s hard to justify 1600 for a two bedroom in this economy, credit market, and job market.

  • I have witnessed that smart real etsate agents just about everywhere are starting to warm up to FSBO Advertising and marketing. They are seeing that it’s not only placing a sign post in the front area. It’s really about building human relationships with these suppliers who later will become customers. So, when you give your time and energy to assisting these traders go it alone the Law associated with Reciprocity kicks in. Great blog post.