Allston Apartment Rental Market Report 2022
Allston’s apartment rental market looks poised for a record year in 2022. The Allston rental market is just starting to warm up, and apartment availability and vacancy rates are currently sitting at all-time lows. Just last March, Allston’s apartment availability hit an all-time high (27.52%) as we endured the worst of the COVID-related supply glut. This drastic supply swing will undoubtedly push Allston rent prices upward in 2022. In fact, the most recent Allston rental data suggests that it has already begun.
Allston Apartment Supply Rollercoaster Ride
The current real-time availability rate (RTAR) for Allston apartments is 4.27%. That marks a -46.63% drop from its pre-pandemic level in February 2020, and a massive 84.48% drop from its all-time high set just 11 months ago.
Similarly, the real-time vacancy rate (RTVR) in Allston is currently 0.36%, down -51.35% from its pre-COVID level. Compared to a year ago, that figure has dropped by an astonishing -94.06%.
Historically in Allston, we’re accustomed to seeing a sharp uptick in apartment availability in January. It’s not unusual for the RTAR to jump from 2 to 8% during the first month of the year, as it did in 2019. That is not the case in 2022, as the availability rate has yet to break 5%.
From the looks of similar trends in nearby Fenway, it appears that we’ll see an extremely tight rental supply this year. Many landlords have told us that they’re seeing a record number of tenants renewing leases this year. Perhaps renter fatigue is setting in after 2 years of pandemic-induced uncertainty. A lot of renters may feel it’s in their best interest to stay in one place this year with the pandemic still looming. Such a tight rental supply can only mean that Allston rent prices will be on the rise in 2022.
Average Rent Prices in Allston MA
Allston’s current average rent price is $2,521, which is down by a fraction (-0.72%) from its pre-COVID level in February 2020. Allston’s average rent price is $111 less than that of the city of Boston’s ($2,521). Allston’s average rent price is more affordable than Boston’s average for all apartment sizes with the exception of 4 bedroom units.
|Neighborhood||Studio||1 Bedroom||2 Bedroom||3 Bedroom||4 Bedroom||5 Bedroom|
|City of Boston||$1,733||$2,038||$2,542||$3,105||$3,770||$4,599|
Looking at the rent price trend lines in Allston, price growth has already begun to accelerate for larger units. Five bedroom apartments in Allston have increased by $150 since late December, while 4 bedroom Allston apartments have jumped by $125 in the same 5-week timeframe.
Prices for smaller apartments have remained relatively flat in Allston. Similar trends have been noted in Boston’s apartment rental market, where it seems the largest price increases we’ve seen so far in 2022 have been for larger apartments.
What Does 2022 Have In Store for Allston’s Apartment Rental Market?
Based on the most recent rental data, we predict Allston will see rent increases in 2022. It looks like that is already happening for larger units, which are always in high demand this time of year as the off campus housing market becomes active. Look for these price gains to begin to affect smaller bedroom count apartments this spring.
We expect price growth between 5-7% in Allston in 2022. This may sound like a bold prediction, but it’s really not when you consider the economic forces at play. First, we’re seeing record inflation throughout the entire supply chain in our housing industry. Everything from interest rates to building materials and labor are going up in 2022, and that will inevitably affect rent prices.
Second, we’re coming out of a 2 year period of rent stagnation caused by uncertainty related to the pandemic. Now that the apartment supply is at record lows, rent prices will have nowhere to go but up barring any future COVID setbacks. Look for Allston’s rent price to surpass its pre-COVID mark in the first half of this year, and continue to rise through the entire second half of 2022. Allston could certainly use and absorb a larger supply of over 1500 units in the next year; but that is not going to happen. Our construction process doesn’t work fast enough to deliver units that quickly. Let’s hope that we see larger supply of apartment and housing permits start to emerge in Allston in 2022. As always, we will continue to monitor this great neighborhood and keep you posted as notable variables arise.