2023 Fort Hill Apartment Rental Market Report
Fort Hill’s apartment rental market is experiencing the highest average rent price on record thanks to extremely low inventory levels. In early January, Fort Hill’s average rent price eclipsed $2,600 which marked a new record high according to our Fort Hill rental market data. Rents have continued to rise since then, while apartment availability is down by -48.13% year over year.
Record Low January Apartment Inventory in Fort Hill
The current real-time availability rate (RTAR) for Fort Hill apartments is 1.94%. That figure is down -48.13% compared to a year ago and is currently sitting at the lowest level of any January on record. Just 5 months ago in August, the RTAR in Fort Hill hit an all-time low of 0.22%.
The current real-time vacancy rate (RTVR) in Fort Hill is 0.65%, which actually is a +195.45% increase from a year ago. Fort Hill’s RTVR has remained under 1% since November 2021, illustrating how severe the supply shortage has become for apartments in the area. Before COVID, RTVR would always spike to 3-5% in September due to the large student population in Fort Hill. Last September, the vacancy rate didn’t surpass 1%.
Fort Hill Average Rent Price At All Time Highs
The current average rent price in Fort Hill is $2,613. Despite the record low inventory, rent prices haven’t increased as much in Fort Hill as they have city-wide. The average rent price in Fort Hill is up +4.48% year-over-year compared to the +13.52% year-over-year surge in the average rent for apartments in Boston .
Fort Hill Apartment Rental Market Forecast 2023
The apartment rental market in Fort Hill will face conflicting market forces in 2023. On one hand, a critical apartment shortage will continue to put upward pressure on prices as apartment supply just can’t keep pace with demand. This issue is not unique to Fort Hill, but an ominous market trend affecting the entire metro Boston rental market.
On the other hand, many economists are forecasting a recession this year due to inflation, incoherent energy policies and rising interest rates. If it leads to corporate layoffs and widespread unemployment, we could see apartment demand throttled which could lead to apartment prices coming back down. So far that has not been the case in Boston where the unemployment rate is at its lowest point since February 2020.
Ultimately, the only long-term solution to rising rent prices is to address the supply issue. Creating additional housing in neighborhoods like Fort Hill will be necessary to accommodate the growing number of enrolled students and business professionals moving to Boston. Quite frankly, last year’s number of new housing units reported by the BDPA just won’t cut it. We’ll continue to follow these trends as they develop on Boston Pads.