Rental Market Update (August Edition). Where are prices falling?

If you’re looking for a one-bedroom apartment in Boston, the median rent for listings is now $300 more expensive than it was on New Year’s Day, according to an analysis by ApartmentAdvisor.

But year over year, the cost has fallen more than 5 percent, according to the rental market.

Nationally, rents are increasing, but at a slower pace. According to Zillow, “the average rent in the U.S. increased 0.4% in July to $2,070, compared to 0.5% in June and 0.6% in April and May.”

What’s happening in Boston itself? Comparing asking prices in August 2023 and 2024, ApartmentAdvisor found an increase in the median rent for available listings in all markets except one-bedroom apartments:

A review of the available listings reveals a slight lead in the two-bedroom apartment market (32.41%) over one-bedroom apartments (31.26%). Apartments with three or more bedrooms represent 25.22% of this total, and studios only 11.1%.

Studios

A year-over-year comparison shows that it’s cheaper to find a studio in Back Bay, Fenway, Dorchester and sought-after Jamaica Plain, but the cost of an apartment in Brighton, popular with students, is more than 15% higher than in 2022:

One bedroom apartments

Savings can be found in Allston, where the median asking rent for available apartments is nearly 24% lower than in August 2022. In Dorchester, the median rent is about 21% lower than last August and more than 23% lower than in August 2022. You can also save in Mission Hill, Fenway and South Boston, but prices are skyrocketing in Roxbury:

Two bedroom apartments

The year-over-year increase in Fenway’s rental cost (185.4%) illustrates how the median asking rental price in this analysis is based on available inventory, and apartments on the market here can be on the high end. Prices are also up since last August in Charlestown (23.4%) and Brighton (7.9%), but deals can be had in Back Bay (down 22.4% since August 2022), South Boston (down 14.4% since August 2022), and the North End (down 14.8% over that time period):

Apartments with three bedrooms and more

This segment of the market is seeing rising costs, especially downtown and in Fenway and West Roxbury. Look for deals in the Back Bay and Charlestown. Roxbury, which has historically been one of the most modestly priced neighborhoods, saw a nearly 15% increase in median price from last August to today and an increase of more than 22% since August 2022:

Our position at the national level

Boston fell in the national rankings to become the fourth most expensive city in the United States for renters. Burlington, Vermont, continues to hold the eighth spot in the rankings, in a state that United Van Lines has called the top immigrant state for three consecutive years.

Here are the 10 most expensive cities for a one-bedroom apartment:

And the cheapest:

Here’s how some other New England towns fared:

For renters looking for more affordable housing in Providence, the search has become more lenient. The median asking price for a one-bedroom apartment in Rhode Island’s capital was $1,732 on Aug. 15, down nearly 14% year over year.

The Massachusetts Market

A quick look at asking prices across the state (the latest available is from July) shows that Cambridge holds the top spot for highest prices: $2,652 for a studio, $2,982 for a one-bedroom, $3,676 for a two-bedroom, and $4,350 for a two-bedroom and up. When you look at the largest rentals, you start to see cities like Hingham, Lexington, and West Tisbury top the list, but Cambridge is the most expensive community overall. That’s despite a 3.8% drop in asking rents year over year:

And these were the cheapest:

It’s worth noting that in Worcester, an option for renters looking to find more affordable housing, the median asking price of $1,750 for a one-bedroom apartment is down nearly 14% year over year, according to the website’s statewide market analysis.

What are prices doing in the community you are targeting?

Renters are thrilled by the news: Zillow’s July Rental Report, released Monday, suggests that some potential tenants have the upper hand in negotiations. More landlords in Greater Boston are offering concessions to tenants, the online rental site reports. “In the Boston metro area, 21.7% of rentals offered a concession in July. That’s up from 14.6% a year ago.”