Apartment Rents Rise, Vacancy Rates Plummet, In Cities Boston Condos For Sale Ford Realty

Boston rent growth outpaces all other large US cities

A new report found that Boston saw the highest rent growth among large U.S cities. According to Rentometer, three-bedroom single-family rents grew 12.5% year over year during the first half of 2025, averaging $4,500.

To afford monthly rent, a household would need to bring in at least $180,000 annually.

Another Massachusetts city, Cambridge, ranked first among mid-sized markets. The median rent for three-bed single-family homes reached $6,000. That’s higher than any California city mentioned in the report. Renters would need to make $240,000 annually to stay within the 30% rent-to-income margin for this area.

Among suburbs, increases varied. Rents in Waltham reached $4,200 (+7.7%) while Newton rents hit $4,900 (+1.6%).

“This surge was partly driven by a greater share of larger, higher-priced homes being listed and a tight inventory of single-family rentals, making local data more susceptible to fluctuations,” said researchers. “While the average price per square foot has remained relatively stable, renters are facing higher total costs simply because the available homes are larger and come with a bigger price tag overall.”

Updated: Boston Real Estate Blog 2025

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From today’s Times:

The once-sizzling housing market may be rapidly cooling, but not all residential property owners are worried – especially if they happen to own apartment buildings.

Landlords are enjoying booming times these days as more people are choosing to rent. Apartment vacancy rates are at five-year lows, averaging 5.6 percent nationwide.

Meanwhile, rents are up nearly 4 percent, on average, over last year, the biggest rise in six years.

As rents rise, so do the stocks of REITs in companies such as AvalonBay Communities and Archstone-Smith Trust.

Archstone-Smith built the recently-opened Archstone Boston Common, and Avalon Bay is big in the Boston (at Prudential Center), in Chestnut Hill, and in the suburbs.

These companies, and companies like them, are good investments, because they are some of the few suppliers ready to meet the demand from people priced out of the condo market.

Unfortunately, the hot rental market means higher rents for residents, as demand continues to outstrip supply.

It’s a Good Time to Be a Landlord – By Vivian Marino, The New York Times

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