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?