Stephen Cafferky, owner of People’s Choice Realty, said he’s seen rents rise, but the double digits hikes are setting records.
Thomas Grillo
Real Estate Editor- Boston Business Journal
It’s getting so expensive to lease apartments in Greater Boston that even veteran brokers are shocked by the numbers.
“I’ve never seen anything like it,” said Stephen Cafferky, owner of People’s Choice Realty. “I’ve seen rents go up, but not like this.”
Apartments are filling up fast, and rents are on the rise with double-digit increases in hot spots like the Back Bay, the North End, South Boston and Somerville.
Real estate experts say the difficulty in obtaining home mortgages, a surging economy, a limited supply of apartments and a vacancy rate in the low single digits are fueling rents. While more than 1,000 apartments are under construction in the Back Bay, Somerville and the Hub’s Seaport District, the market is still a long way from catching up with demand.
New data from Rent Jungle, which tracks online apartment listings, found that average asking rents in Greater Boston increased 3.2 percent in June compared to a year ago. But in South Boston and Somerville rents rose 20 percent to $2,665 and $2,371, respectively. In the Back Bay and the North End rents increased 15 percent to $3,063 and $2,685.
For more on the rental market, read “Rent Rush,” (premium content.)
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