2022 Dorchester Apartment Rental Market Report
The apartment rental market in Dorchester, MA has never looked more expensive for renters in what has historically been one of Boston’s more affordable neighborhoods. In March of this year, Dorchester’s average rent price hit $2,253, surpassing its previous record high set in June of 2020 ($2,229). Since July, that average rent price has continued to climb to new all-time highs weekly amid record low apartment availability. It now sits at $2,370, a +9.74% increase year-over-year. Let’s look at the main trends driving Dorchester’s apartment rental market in 2022.
Dorchester Apartment Availability At Record Lows
The current real-time availability rate (RTAR) for Dorchester apartments is 2.16%. That is up considerably from early September when RTAR hit a historic low of 1.60%. Apartment availability is down -40.50% year-over-year in Dorchester. Despite the record low apartment availability, Dorchester still has the second highest RTAR out of all neighborhoods in Boston behind Mattapan (2.88%).
Apartment Vacancies in Dorchester MA
The current real-time vacancy rate (RTVR) in Dorchester is 1.47%. That vacancy rate is down -53.33% year-over-year, and has stayed below the 2% level since March of this year. The current RTVR in Dorchester is the second highest in Boston at the moment behind Roxbury (2.07%).
Record High Rent Prices in Dorchester MA
As a result of the tight inventory, average rent price in Dorchester is higher than it’s ever been. The current average rent price is $2,372 in Dorchester and continues to climb higher by the week. Rent prices are still relatively affordable in Dorchester compared to most other neighborhoods in Boston. Dorchester ranks as the 4th lowest average rent price in Boston behind Roslindale ($2,356), Mattapan ($2,185) and Hyde Park ($2,164). Average rent in Dorchester is $454 less expensive on average than the City of Boston ($2,810).
Dorchester Apartment Rental Market Forecast
If you were to look at the most recent rental data in Dorchester, you’d think that prices have nowhere to go but up. However, there is looming uncertainty in the current economy due to record high inflation. The recession has only just begun, and we could see apartment demand diminish if mass corporate layoffs occur in Boston.
For now, it seems like rental demand has been stable throughout most of Boston despite the current economy. Rising interest rates have forced many potential buyers to hold off on purchasing a home and rent instead. This has put additional demand strains on the already tight supply of apartments in Dorchester.
Look for rent prices to continue to climb in Dorchester throughout the remainder of 2022. Rent prices will likely flatten out early in 2023, and could possibly turn downwards if economic conditions worsen. We will continue to monitor these trends as they develop.