Boston’s current average rent price is $2,632, which marks a 1.41% increase year-over-year. That average is still below the 2 year pre-COVID level by -1.37%, but if you look at the trend line, it looks like that will be eclipsed in 2022.
| 1-year Avg. Rent Change | 2022 Average Rent Price | 2021 Average Rent Price | % Change |
|---|---|---|---|
| City of Boston | $2,607 | $2,586 | +0.82% |
| 2-year (pre-COVID) Avg. Rent Change | 2022 Average Rent Price | 2020 Average Rent Price | % Change |
|---|---|---|---|
| City of Boston | $2,607 | $2,656 | -1.84% |
If we breakdown this data by property size, we can see that average rent prices have dropped more for smaller rental units, while larger units have surpassed pre-pandemic levels. Average rent prices for Boston studios and 1 bedroom apartments are down -4.57% and -6.69% respectively, while 3 bedroom average rents have increased by 1.37% and 4 bedrooms are up 1.57% in comparison to January 2020.
| AVG RENT PRICE STUDIO | AVG RENT PRICE 1BR | AVG RENT PRICE 2BR | AVG RENT PRICE 3BR | AVG RENT PRICE 4BR | AVG RENT PRICE 5BR |
|---|---|---|---|---|---|
| CITY OF BOSTON | CITY OF BOSTON | CITY OF BOSTON | CITY OF BOSTON | CITY OF BOSTON | CITY OF BOSTON |
| $1,722 | $2,031 | $2,531 | $3,072 | $3,681 | $4,595 |
| -4.57% | -6.69% | -2.08% | +1.37% | +1.57% | +2.56% |
The drop in pricing for smaller units may evidence of the shift in apartment demand caused by remote work and the desire for larger spaces. Boston’s young professionals tended to gravitate towards smaller apartments. Last year there was strong demand for professionals wanting an extra bedroom so they could set up separate zoom rooms in order to continue business activity. Some employers were willing to provide salary increases so their staff could get larger housing accommodations due to downsizing their commercial workplace footprint.
Predicting Boston’s 2022 Apartment Rental Market
Looking back on the last few months of apartment data, it’s easy to be lulled into a sense of security as we head into 2022. The data certainly suggests that the worst of the pandemic related market forces are behind us. This year’s market outlook appears much more…