2022 South End Apartment Rental Market Report
We are into the fifth month of 2022, and demand for South End apartments is stronger than it’s ever been. Following a year and a half of market uncertainty, demand came roaring back in the latter half of 2021. By January of this year, apartment availability in South End had contracted to an all-time low of 0.40%. As of May 1, apartment occupancy has hit an astonishing 99.9% in Boston’s South End.
Record Low Vacancies in South End Boston
The most recent apartment data for South End shows a staggeringly low real-time vacancy rate (RTVR) of 0.10%. While South End is no stranger to low vacancy rates, the neighborhood has never recorded an RTVR this low. Considering that the RTVR doesn’t hit its annual low until late August, it’s possible that South End could achieve 100% occupancy before the end of the leasing season.
Scarce Apartment Availability in South End
South End’s real-time availability rate (RTAR) is a paltry 2.26% at the moment. That marks a 33.5% decrease in available apartment inventory for South End renters compared to its pre-pandemic level in early May 2019 (3.4%). South End’s RTAR started the year at an all-time low of 0.40%.
Apartment scarcity has put South End landlords in the driver’s seat in 2022, and rents are up 8.08% year-over year as a result.
South End Rent Prices Climbing
South End’s current average rent price is $3,294, making it the 3rd most expensive neighborhood to rent an apartment in Boston behind Back Bay and Downtown. The current average rent price is just $5 short of the all-time high recorded for South End on April 8, 2019 ($3,299).
Rent prices did decline in the South End for a 2 year period during the pandemic, going as low as a -9.65% decrease year-over-year by the end of June 2021. Since then, the market has recovered strongly. Now, South End’s average rent price is up by over 8% year-over-year, and it’s only a matter of days before it surpasses its record high.
South End Rental Market in 2022
Whenever you combine record low apartment inventory with record high inflation, what you have is a recipe for soaring rent prices. Renters in South End have to be prepared for higher prices and fewer options in 2022. Those who act with a sense of urgency will fare the best in 2022. Apartment availability has already begun to trend downwards in South End, indicating that the annual peak in apartment availability is already behind us for the 2022 rental season.
Prices are going to continue to climb and likely accelerate as the RTAR continues to shrink towards its cyclical low point in late August. The earlier you act this year, the more options and lower prices you’ll see. Rent prices will climb throughout the year and may even reach 9-10% year-over-year growth by 2023.