Boston is at the tip of an unprecedented demographic shift in the multifamily sector. We are seeing the strongest fundamentals in more than a decade.
With over 4,000 units scheduled for delivery annually through 2015, and more than 7,000 renter households created annually over the same period, we simply aren’t building enough product to meet this influx in demand.
The Boston multifamily market is one of the best performing markets in the country. Institutional investors see the city as one of the most desirable markets alongside New York and San Francisco. Their eagerness to invest capital into Boston multifamily has resulted in unprecedented pricing, and has stimulated new development throughout the region.
Institutional investors like Hines, Jefferson Apartment Group, Mill Creek, and Gerding Edlen have started their first projects in Metro Boston. Historically prolific developers in the area such as AvalonBay, Hanover, Criterion, National Development and Wood Partners continue to build on their success.
Boston’s employment remained insulated through the downturn thanks to the heavy concentration of jobs in health care, high tech and life sciences. We are also at the forefront of an unprecedented increase in demand for apartments due to improving renter demographics.
We’re not overbuilt. Demographics are in our favor, and the development pipeline fits well with the urbanization trend here. We feel strongly that multifamily in Metro Boston will continue to thrive.
Click here to read the entire article by Travis in the latest edition of Northeast Real Estate Business magazine.