With inventory as low as it is in Charlestown, it’s hard to see a scenario where rent prices fall in 2023. That may seem counterintuitive considering the current state of the national economy. While it’s true that rent prices are falling in many of the nation’s largest markets, that is just not the case in Charlestown, and all of Greater Boston for that matter.
The main lever keeping rent prices high is the supply issue. There are just not enough apartments to meet renter demand in Boston. This is why Charlestown’s vacancy rate is close to the 0% mark and Boston’s average rent price is climbing higher by the week. Until City Hall gets serious about the housing shortage, these supply issues will continue to put Boston’s renter at a disadvantage. Last year, Boston saw a 7 year low in new housing units built. That means the housing shortage isn’t going away until the city paves a path for developers and landlords to create additional units.
Until that happens, look for rent prices to continue to rise in the short term. We may not see double digit growth in Charlestown’s average rent price this year like we did in 2022, but it will still rise nonetheless. We will continue to monitor these rental market trends as they develop.