Everyone knows that the Luxury Glutpocalypse has hit Greater Boston: too many new higher-end apartments, too few tenants for them, and a lot of gobsmacking incentives to try and right the market ship. New stats from our pals at Zumper appear to support these trends.
Above is a map tracking rent increases and decreases throughout 2014 in numerous areas. You can see that the decreases have been steepest in areas that have seen some of the briskest development of luxury apartments (Back Bay, downtown Boston, Chinatown). Let's not kid ourselves, however: The rent decreases in these areas throughout the year have been relatively slight (no greater than 5 percent in downtown, for instance) and rents overall were up a little more than 2 percent. But it's interesting to note that some of the biggest drops—and the slightest increases, for that matter—came in areas where big luxury complexes have recently opened. No wonder condo conversions are all the rage.
· Boston Rents Up 2.3% in 2014 [Zumper]
· New South End Development Throwing in Two Months Free [Curbed Boston]
· Shop and Compare Luxury Rents Throughout Greater Boston [Curbed Boston]
· Manhattanization of Boston Real Estate Continues Unabated [Curbed Boston]