2023 North End Apartment Rental Market Report
The apartment rental market in Boston’s North End has begun 2023 like many other metro Boston neighborhoods: with record high rent prices and record low inventory. Availability for North End apartments is down from March 2022, which happened to be an all-time low for March at the time. As a result of the lean inventory, prices have been climbing in North End since the pandemic subsided, and now sit at record highs. Here are the trends driving the North End apartment rental market in 2023.
Low Supply of Apartments in Boston’s North End
The current real-time availability rate (RTAR) of apartments in North End is 6.04%. Historic North End rental data shows that apartment availability is down -7.93% YOY. RTAR typically peaks in March in the North End, so it is unlikely that apartment availability will rise above the 7% mark in 2023. It’s worth noting that in September of last year, North End’s RTAR hit an all-time low of 0.62%.
The current real-time vacancy rate (RTVR) in North End is 0.86%, which is actually up +10.26% since March last year. North Ends vacancy rate has hovered at or below the 1% mark since late 2021 following historic surges in rental supply during the pandemic. It is highly unlikely that North End apartment prices will fall with inventory levels so low and inflation still keeping labor and material costs high.
North End Rents At Historic Highs and Still Climbing
North End’s average rent price currently sits at an all-time high of $3,303, up +7.18% from one year ago. North End rent prices are showing no signs of relenting so far in 2023, as they are up by +$208 since January 1. The North End remains one of the most expensive neighborhoods to rent an apartment in Boston.
North End Apartment Rental Market Forecast 2023
North End’s apartment rental market doesn’t appear to be losing momentum as we head towards the close of the first quarter of 2023. Apartment availability and vacancies are at or near historic lows for this time of year, suggesting that North End rent prices may continue to climb in the foreseeable future. However, with recent banking turmoil and the constant buzz of possible tech layoffs, this could potentially create apartment vacancies which would be welcome relief to apartment seekers.
Despite a sluggish economy nationwide, Boston’s local economy remains strong, and North End will always be a popular neighborhood for renters given its central location and excellent restaurants. It appears safe to say that it could be quite challenging finding a great apartment in the North End at a fantastic price point over the next three months.
Beyond that, rent prices may level off during the latter half of 2023 depending on economic conditions. If the ever looming recession brings a large wave of corporate layoffs to the metro area, we could even see rent prices fall in the latter half of the year. We will continue to monitor these trends as they become more clear.