Boston, MA Multifamily Market Report November 2025

Boston’s multifamily market remains resilient despite recent shifts in supply and demand. Steady leasing activity over the past few quarters has coincided with an uptick in new supply, creating mild upward pressure on vacancy rates, which reached 6.4% in October 2025. While this has slowed rent growth, the market continues to display healthy fundamentals as supply stabilizes. Over the past year, Boston recorded 6,200 units of net absorption against 9,500 new deliveries, with particularly strong leasing in East Boston/Chelsea, Allston/Brighton, and southern submarkets. Demand has also rebounded in areas like Back Bay and the South End.

Compared to national trends, Boston continues to outperform as its vacancy rate remains about 200 basis points below the U.S. average. Year-over-year rent growth has eased to 0.4%, slightly above the national figure, with projections suggesting moderate improvement later in the year. While broader economic headwinds and policy shifts could temper growth, Boston’s market fundamentals and appeal to both residents and investors are expected to sustain stability, with vacancies likely to peak below 7%.

Key Findings

In October 2025, supply has outpaced absorption with the delivery of 817 units and the net absorption of 543 units.
The 495 South submarket recorded an uptick in demand, with residents absorbing over 4% of its inventory in the past 12 months.
There are 12,555 units on the way across Boston, equating to 4.3% of inventory, with one-third of current construction focused on the north and south sides of Downtown.

Boston Multifamily Supply & Demand Dynamics

Source: CoStar Group, Inc.

Greater Boston MSA Demographics

Source: CoStar Group, Inc.

Unemployment Rate: 4.4%
Current Population: 5,063,939
Households: 1,995,146
Median Household Income: $117,719

Greater Boston MSA Population, Labor, & Income Growth

Source: CoStar Group, Inc.

Greater Boston MSA Construction

Construction levels across Boston remain steady, though signs of moderation are emerging. From 2023 through 2025, annual deliveries are projected between 7,800 and 8,600 units, consistent with long-term trends despite high interest rates and elevated building costs. Roughly 8,600 units were completed in 2023 and 7,800 in 2024, with another 8,500 expected by year-end 2025. Currently, 12,555 units are under construction, concentrated in Somerville/Charlestown and South Boston/Seaport. About 30% of projects now fall into the Class B sector, a shift from Boston’s earlier luxury-heavy development phase. The shift reflects more balanced supply strategies amid rising costs and cooling demand.

Unit Construction Starts

Source: CoStar Group, Inc.

Units Under Construction

Source: CoStar Group, Inc.

Sales

Boston’s multifamily investment activity remains resilient despite elevated interest rates and moderating transaction volume. Over the past year, 13,092 units changed hands for a total of $3.7 billion, slightly below the five-year average of $4.1 billion. Market pricing averages around $450,000 per unit, nearly double the national average, with cap rates around 5.1%. Private buyers continue to dominate activity, accounting for nearly half of acquisitions and most sales, while institutional players remain active in high-value deals. With investors shifting away from office and life science assets, multifamily remains Boston’s preferred investment sector.