You read that right: Rents are starting to fall across the city.
In the Seaport, rents fell by 9 percent in the third quarter compared to a year ago, according to data from CoStar cited by the Boston Business Journal.
In other neighborhoods, the declines were much smaller last quarter, yet they did go down in the West End, Beacon Hill, North End, Charlestown and even in the Back Bay and South End.
The reasons vary, but they boil down to three things: 1.) New housing supplies coming on line in the Seaport area, creating competition among landlords and thus lower rent prices. 2.) People are just too maxed out on what they can afford. 3.) The economy is still weak.
The first item, i.e. newly constructed housing, is highly encouraging and signals why it’s so important to keep building more housing.
File under: Build, baby, build