2023 Newton Apartment Rental Market Forecast
Based on the current rate of supply absorption, Newton will come very close to setting a new all-time low in RTAR in September. RTAR took a rapid downturn in Newton during August of last year. If that trend repeats itself this year, it’s likely that Newton’s RTAR will bottom out below the 0.65% record set in 2022. It’s unlikely that the vacancy rate will drop below the 0.11% record low set in late August of last year.
Still, despite the historically low supply of apartments, rent prices have been trending downwards since March. It’s hard to envision this trend continuing based on the current apartment shortage. Prices will likely trend back upwards as we near 2024 which is when seasonal demand typically returns.
The only long-term remedy for rising rent prices is an injection of new housing supply. This is the single biggest obstacle facing the Greater Boston rental market and is one that must be addressed in places like Newton, MA where the amount of developable land is greater than in other densely populated neighborhoods. We will continue to monitor and report on these trends as they develop.