As we are approaching the end of the Fall market here in Boston, here is a look at some year-to-date data on the condominium and apartment markets, and how this year compares with the past few years.
The number of available units on both the buying (condos) and renting (apartments) sides have improved slightly this year, but still remain relatively low.
In terms of closed deals, the number of apartment deals signed this year was slightly up over last year. Conversely, the number of condo sales was at its lowest this year than in the previous four years. One commonly cited explanation for this is interest rates - with high mortgage rates, monthly mortgage payments are higher this year than they have been for the past several years. Accordingly, there was stronger demand this year on the leasing side than the purchasing side.
The chart above illustrates the difference in number of units between what was listed year-to-date and what was closed year-to-date. It is meant to show what was NOT sold/rented. While the condo market has remained relatively steady in this regard, Boston's apartment market has seen more volatility. The market saw a high number of unrented apartments in the height of the Covid-19 Pandemic (as renters moved outside of the City), and we have seen another surge in unrented apartments again this year.
Notably, the average sale price for Boston condos on a dollar-per-square-foot basis has also shown continued growth over the past five years. Boston rents have fluctuated over the past few years, but remained relatively flat this year compared with last year.
With the hope of interest rate cuts coming and the fact that Boston continues to be an important hub for many businesses and industries, we remain optimistic on Boston's condo and apartment markets.