Multi-Family Market Report
Boston Market
PREPARED BY
Richard Cawley President
Boston Multi-Family
MULTI-FAMILY MARKET REPORT
Market Key Statistics
2
Vacancy
3
Rent
6
Construction
12
Under Construction Properties
14
Sales
16
Sales Past 12 Months
17
Economy
19
Market Submarkets
22
Supply & Demand Trends
26
Vacancy & Rent
28
Sale Trends
30
Deliveries & Under Construction
32
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Overview Boston Multi-Family 12 Mo. Delivered Units
12 Mo. Absorption Units
Vacancy Rate
12 Mo. Asking Rent Growth
6,887
6,864
5.0%
3.1%
The supply pipeline has been tremendously full in Boston, with inventory growth more akin to that of a metro like Austin or Nashville than a mature, densely populated, coastal metro. As a result, vacancies will head modestly north over much of the forecast. Construction is focused on the urban cores of Boston and Cambridge, with neighborhoods such as Seaport, and North Cambridge leading the charge. The metro has not seen this many units coming on line since the 1980s. With so many projects hitting the market simultaneously, rent growth reached a peak in 2015 and will likely
decelerate over the forecast. But Boston’s strong base of renters—driven by the area’s top-notch colleges and universities, well-paid Millennials who want the urban lifestyle, and a handful of empty nesters—will help keep demand humming. However, as in many heavy-building metros, the question of “How much is too much?” is on the minds of most market players, given the unprecedented construction of high-end inventory. Will there be enough renters at the top end of the market willing to pay the rents in these new buildings?
KEY INDICATORS Units
Vacancy Rate
Asking Rent
Effective Rent
Absorption Units
Delivered Units
Under Constr Units
4 & 5 Star
68,521
8.7%
$2,724
$2,669
1,979
1,228
14,976
3 Star
72,017
3.3%
$1,998
$1,980
371
0
3,462
1 & 2 Star
56,713
2.7%
$1,602
$1,595
87
0
0
Market
197,251
5.0%
$2,229
$2,197
2,437
1,228
18,438
Annual Trends
12 Month
Historical Average
Forecast Average
Peak
When
Trough
When
Current Quarter
Vacancy Change (YOY)
-0.3%
4.6%
6.2%
5.8%
2018 Q1
1.7%
2000 Q1
Absorption Units
6,864
3,199
6,625
6,925
2016 Q4
(398)
2003 Q2
Delivered Units
6,887
3,702
7,395
8,782
2015 Q3
37
2011 Q3
Demolished Units Asking Rent Growth (YOY) Effective Rent Growth (YOY) Sales Volume
272
37
53
145
2011 Q4
0
2016 Q3
3.1%
2.0%
1.8%
13.0%
2001 Q2
-4.0%
2009 Q4
3.1%
2.0%
1.9%
13.0%
2001 Q2
-4.1%
2009 Q4
$3.5 B
$1.2 B
N/A
$3.7 B
2018 Q1
$154.9 M
2002 Q1
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Page 2
Vacancy Boston Multi-Family As in many core coastal metros, apartment development hit Boston earlier than it did most markets, and the metro is now in the late-expansion phase. Developers have expanded beyond the urban core and are bringing new luxury product to the suburbs as well, raising vacancies. Fundamentals are beginning to soften, but the market isn’t expected to collapse. Vacancies will continue to creep up, which will cause rent growth to slow. While modest rent increases will be possible for the vast majority of metro properties over the next several years, rates for some of the newer buildings, particularly those in submarkets with heavy construction such as Downtown and Seaport/South Boston, may fall slightly, and concessions could extend beyond the lease-up period. Boston is blessed with built-in rental demand, thanks to an abundance of universities, a desirable urban core, and home prices out of reach for those under 30. Greater Boston contains more than 50 accredited universities, including premier institutions such as Harvard and MIT. In fact, Boston has the highest percentage of college students of any major city in the United States. Aside from a few rich, generally foreign students, most of these college kids live in Class C buildings, or in the shadow market of condo and single-family home rentals. R International migrants represent another source of rental demand. Boston, like other large, mature metros such as New York and D.C., has negative net domestic migration, perhaps because families are moving to more affordable areas of the country. Therefore, Boston relies heavily on international migrants to close the gap. The international migrants who arrive here are typically better educated and paid than those in other major metros and are also more likely to rent. A full 50% of all international immigrants over 25 who have arrived in Boston since
2010 have a bachelor's degree, the highest rate on the East Coast and surpassed only by the tech-heavy West Coast markets. Eighty-eight percent of this group rents, again one of the highest rates in the country. These educated renters aren't exclusively underpaid PhD candidates and indebted medical students—27% of working migrants who move here earn more than $75,000 a year. Rents keep reaching new highs, and over 100 buildings in the metro now have at least one unit advertised at $5/SF or higher. Most of these buildings are in Boston or Cambridge, but a handful are outside the urban core, in areas such as Waltham. While the top end of the market is feeling some headwinds, particularly Downtown and in Cambridge, occupancies in most properties have not been affected. But as the ultra-luxury product keeps rolling in, the question for many in the metro is, How many more deep-pocketed renters are out there? The good news for apartment owners is that the peak age for a Millennial is 27–28 years old, so they still have several years of apartment renting ahead of them. However, warning signs lurk further on the horizon. Growth in the 20–34-year-old cohort began to sharply decelerate in 2013, and in 2023 the cohort will begin to shrink for a decade, similar to in much of the '90s. And not only will the population in this cohort begin to shrink as the bulk of Millennials ages past 30, many will be getting married and starting families. That will inspire many to stop renting in the cool urban area and buy a home where the schools are good (the average age of a first-time homeowner in the U.S. is 33, though probably a little higher in Boston). Consequently, over the long term, apartment demand in Boston may hit from two directions at the same time, which would have adversely affect rents.
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Vacancy Boston Multi-Family ABSORPTION, NET DELIVERIES & VACANCY
VACANCY RATE
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Vacancy Boston Multi-Family VACANCY BY BEDROOM
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Rent Boston Multi-Family The most interesting trend is that after many years of fantastic rent growth, downtown luxury product is having problems finding tenants, leading to stagnant rents or declines in a few cases, plus an increase in concessions. This goes not only for the brand-new buildings delivered in this cycle, but also for the other buildings that compete with them. And it is true for buildings that lie outside the submarkets with a tremendous amount of building. Take the Back Bay, for example. It only had two buildings complete in this cycle, compared to South Boston and the Seaport, which have had a combined 12 buildings deliver. And yet rent growth in the Back Bay has dropped off dramatically since the end of 2015 , worse than the roughly 3% growth in South Boston/Seaport. This is not to imply that the entire metro is having problems, some submarkets such as Allston/Brighton and North Shore are doing quite well, but there has been little construction in these submarkets, nor do they compete with the submarket that have been building. The reason is simple: competition. While this may not be true at the non-institutional end of the market, such as the small three-to-five-floor walkups, larger buildings are competing head-to-head for tenants and have not been able push rents the way they did from 2010 through the end of 2015, when rent growth in the Back Bay was 3% annually. In fact, the median rent growth for Boston area submarkets over that period was an astonishing 4% per year, and in a few cases, such as the Waltham/Arlington/Belmont Submarket, over 5%. If we look at the cities of Boston and Cambridge, where most construction has been focused, there is a clear increase in concessions. During the beginning of the
recovery, for example, these areas had an average concession of roughly zero, but now it’s up to about 8%, which equates to one month’s free rent. This share of concessions is also clearly biased to the newer buildings, as only 2% of all buildings in these cities are offering concessions, but 25% of buildings built since 2010 are offering them. Additionally, we try to get a truer picture of concessions through our 200 secret shoppers, who call apartments posing as potential renters, but even then we may not be getting the complete scope of the trend. We hear from our clients of some buildings offering two months of free rents in concessions, or paying tenants’ moving costs or giving them gift cards. We have also heard that many buildings are paying a full month’s broker’s fee, which traditionally would have been paid by the tenant. In fact, we’ve heard of a few managers who are paying double fees (two months of free rent) to brokers to get people in the door. Depending which side of the coin you’re on, the good news for owners (bad news for tenants) is that deliveries will drop dramatically after 2018, due to rising construction costs and fewer available/profitable sites, but mostly because of a dearth of credit, as many banks have loaded up on apartment construction loans and don’t have room on the balance sheet for any more. Once construction wanes, landlords will find themselves in a more normal rental environment, but they’ll be presented with a new problem on the horizon: fewer potential tenants, as the last of the Millennials age into the prime renting cohort, those 20–34 years old. The generation behind Millennials, Generation Z, (born after 2000) is a smaller one and can’t pick up the slack.
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Page 6
Rent Boston Multi-Family DAILY ASKING RENT PER SF
ASKING RENT PER UNIT & RENT GROWTH
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Rent Boston Multi-Family ASKING RENT PER UNIT BY BEDROOM
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Page 8
Rent Boston Multi-Family 4 & 5 STAR EXPENSES PER SF (ANNUAL) Operating Expenses Market / Cluster
Capital Expenditures
Mgmt.
Admin.
Payroll
Water
Utilities
Maint.
Insurance
Taxes
Other
Total
$1.10
$1.80
$1.20
$0.83
$2.17
$2.18
$0.56
$2.64
$0.10
$0.45
$0.79
$13.82
495-North
$0.81
$1.15
$0.67
$1.05
$1.89
$1.34
$0.38
$2.25
$0.10
$0.47
$0.81
$10.92
495-South
$1.05
$1.98
$1.81
$1.18
$2.46
$1.81
$0.41
$2.03
$0.12
$0.47
$0.81
$14.13
95-North
$0.90
$1.20
$0.79
$1.05
$1.92
$1.34
$0.49
$2.25
$0.10
$0.47
$0.81
$11.32
Allston/Brighton
$1.27
$1.84
$1.30
$0.51
$2.08
$2.19
$0.86
$3.46
$0.10
$0.47
$0.81
$14.89
Back Bay/South End
$1.21
$1.75
$1.30
$0.51
$2.03
$2.04
$0.77
$3.07
$0.10
$0.40
$0.75
$13.93
Brookline/Newton…
$1.02
$1.99
$1.60
$1.10
$2.33
$1.88
$0.69
$2.08
$0.11
$0.41
$0.76
$13.97
Charlestown
$1.27
$1.84
$1.30
$0.51
$2.08
$2.19
$0.86
$3.46
$0.10
$0.47
$0.81
$14.89
Downtown Boston
$1.25
$1.79
$1.30
$0.51
$2.05
$2.13
$0.82
$3.26
$0.10
$0.43
$0.78
$14.42
Everett/Malden/Med… $0.98
$1.51
$0.67
$1.05
$2.16
$2.26
$0.38
$2.90
$0.10
$0.47
$0.81
$13.29
Fenway/Mission Hill
$1.22
$1.76
$1.30
$0.51
$2.04
$2.06
$0.79
$3.13
$0.10
$0.41
$0.76
$14.08
Greater Merrimack…
$0.96
$1.95
$1.26
$0.57
$2.00
$1.52
$0.36
$1.64
$0.10
$0.46
$0.80
$11.62
Harvard/Central/Ke…
$1.36
$2.57
$0.67
$1.05
$2.61
$5.37
$0.42
$3.18
$0.10
$0.47
$0.81
$18.61
Metro West
$1.03
$1.65
$0.98
$1.06
$2.08
$2.64
$0.41
$2.57
$0.10
$0.47
$0.81
$13.80
New Hampshire Be…
$1.02
$1.84
$1.30
$0.92
$2.08
$2.05
$0.44
$2.63
$0.10
$0.47
$0.81
$13.66
North Cambridge-S…
$1.03
$1.66
$0.76
$0.98
$2.12
$2.61
$0.46
$2.69
$0.10
$0.47
$0.81
$13.69
North Shore
$0.96
$1.85
$1.26
$0.57
$2.01
$1.53
$0.30
$1.64
$0.10
$0.47
$0.81
$11.50
Quincy/Milton/Rand…
$1.03
$2.51
$1.37
$1.08
$2.39
$1.41
$0.44
$2.29
$0.12
$0.47
$0.81
$13.92
Route 1 North
$1.25
$1.81
$1.26
$0.55
$2.08
$2.19
$0.83
$3.42
$0.10
$0.47
$0.81
$14.77
Route 1 South
$1.05
$1.98
$1.81
$1.18
$2.46
$1.81
$0.41
$2.03
$0.12
$0.47
$0.81
$14.13
South Boston/Seaport
$1.21
$1.72
$1.30
$0.51
$1.93
$2.13
$0.80
$3.06
$0.10
$0.39
$0.75
$13.90
South Plymouth Co…
$1.02
$1.84
$1.30
$0.92
$2.08
$1.71
$0.44
$2.20
$0.10
$0.47
$0.81
$12.89
South Shore
$1.26
$1.98
$2.47
$1.18
$3.10
$2.51
$0.41
$2.03
$0.12
$0.47
$0.81
$16.34
South Suffolk County
$1.27
$1.84
$1.53
$0.51
$2.08
$2.63
$0.86
$3.46
$0.10
$0.47
$0.81
$15.56
Strafford County
$0.87
$1.65
$1.16
$0.79
$1.80
$1.67
$0.41
$2.35
$0.08
$0.34
$0.71
$11.83
Suburban Rockingh…
$1.02
$1.84
$1.30
$0.92
$2.08
$2.05
$0.44
$2.63
$0.10
$0.47
$0.81
$13.66
Waltham/Arlington…
$0.81
$1.15
$0.67
$1.05
$1.89
$1.34
$0.38
$2.25
$0.10
$0.47
$0.81
$10.92
Boston
Appliance Structural
Expenses are estimated using NCREIF, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.
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Page 9
Rent Boston Multi-Family 3 STAR EXPENSES PER SF (ANNUAL) Operating Expenses Market / Cluster
Capital Expenditures
Mgmt.
Admin.
Payroll
Water
Utilities
Maint.
Insurance
Taxes
Other
Total
$0.88
$1.34
$0.87
$0.59
$1.68
$1.65
$0.40
$1.72
$0.09
$0.10
$0.54
$9.86
495-North
$0.77
$1.03
$0.63
$0.63
$1.74
$1.23
$0.35
$2.04
$0.09
$0.10
$0.54
$9.15
495-South
$0.95
$0.92
$0.37
$0.79
$1.53
$1.69
$0.39
$1.64
$0.11
$0.10
$0.54
$9.03
95-North
$0.88
$1.05
$0.75
$0.61
$1.74
$1.18
$0.49
$1.48
$0.09
$0.10
$0.54
$8.91
Allston/Brighton
$0.94
$1.39
$1.28
$0.49
$1.84
$1.46
$0.42
$1.47
$0.10
$0.10
$0.54
$10.03
Back Bay/South End
$0.93
$1.39
$1.28
$0.49
$1.83
$1.45
$0.41
$1.45
$0.09
$0.10
$0.54
$9.96
Brookline/Newton…
$0.96
$0.92
$0.37
$0.77
$1.54
$1.88
$0.71
$1.65
$0.11
$0.10
$0.54
$9.55
Charlestown
$0.94
$1.39
$1.28
$0.49
$1.85
$1.46
$0.41
$1.47
$0.09
$0.10
$0.54
$10.02
Downtown Boston
$0.94
$1.39
$1.28
$0.49
$1.84
$1.45
$0.41
$1.46
$0.09
$0.10
$0.54
$9.99
Everett/Malden/Med… $0.93
$1.42
$0.63
$0.64
$2.04
$2.13
$0.35
$2.74
$0.09
$0.10
$0.54
$11.61
Fenway/Mission Hill
$0.94
$1.34
$1.14
$0.52
$1.79
$1.52
$0.48
$1.57
$0.09
$0.11
$0.55
$10.05
Greater Merrimack…
$0.57
$1.89
$0.93
$0.32
$0.76
$0.94
$0.30
$1.14
$0.09
$0.10
$0.54
$7.58
Harvard/Central/Ke…
$1.30
$2.45
$0.64
$0.72
$2.49
$5.11
$0.40
$3.03
$0.09
$0.10
$0.54
$16.87
Metro West
$0.98
$1.57
$0.93
$0.64
$1.99
$2.51
$0.39
$2.44
$0.09
$0.10
$0.54
$12.18
New Hampshire Be…
$0.87
$1.38
$0.91
$0.65
$1.63
$1.96
$0.42
$1.88
$0.09
$0.10
$0.54
$10.43
North Cambridge-S…
$0.81
$1.18
$0.63
$0.64
$1.82
$1.59
$0.36
$2.15
$0.09
$0.10
$0.54
$9.91
North Shore
$0.51
$0.75
$0.93
$0.40
$1.07
$0.77
$0.23
$1.30
$0.09
$0.10
$0.54
$6.69
Quincy/Milton/Rand…
$0.93
$0.91
$0.36
$0.78
$1.52
$1.32
$0.41
$1.63
$0.10
$0.10
$0.53
$8.59
Route 1 North
$0.94
$1.39
$1.28
$0.49
$1.84
$1.45
$0.41
$1.46
$0.09
$0.10
$0.54
$9.99
Route 1 South
$0.96
$0.92
$0.37
$0.79
$1.54
$1.71
$0.39
$1.65
$0.11
$0.10
$0.54
$9.08
South Boston/Seaport
$0.72
$1.24
$1.28
$0.49
$1.33
$1.45
$0.54
$1.42
$0.09
$0.10
$0.54
$9.20
South Plymouth Co…
$0.86
$1.38
$0.91
$0.65
$1.62
$1.62
$0.42
$1.87
$0.09
$0.10
$0.54
$10.06
South Shore
$0.95
$1.15
$0.46
$1.10
$1.71
$1.31
$0.38
$1.30
$0.11
$0.10
$0.54
$9.11
South Suffolk County
$0.92
$1.38
$1.28
$0.49
$1.80
$1.45
$0.41
$1.43
$0.09
$0.10
$0.54
$9.89
Strafford County
$0.80
$1.33
$0.89
$0.62
$1.52
$1.71
$0.40
$1.88
$0.09
$0.11
$0.54
$9.89
Suburban Rockingh…
$0.85
$1.41
$0.94
$0.66
$1.63
$1.87
$0.42
$1.94
$0.09
$0.13
$0.56
$10.50
Waltham/Arlington…
$0.77
$1.04
$0.63
$0.63
$1.74
$1.23
$0.35
$2.04
$0.09
$0.10
$0.54
$9.16
Boston
Appliance Structural
Expenses are estimated using NCREIF, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.
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Page 10
Rent Boston Multi-Family 1 & 2 STAR EXPENSES PER SF (ANNUAL) Operating Expenses Market / Cluster
Capital Expenditures
Mgmt.
Admin.
Payroll
Water
Utilities
Maint.
Insurance
Taxes
Other
Total
$0.70
$0.95
$0.77
$0.56
$1.26
$1.14
$0.36
$1.18
$0.04
$0.09
$0.51
$7.56
495-North
$0.76
$0.66
$0.60
$0.61
$1.44
$0.98
$0.29
$1.44
$0.04
$0.09
$0.51
$7.42
495-South
$0.83
$0.88
$0.35
$0.75
$1.47
$1.53
$0.37
$1.57
$0.04
$0.09
$0.51
$8.39
95-North
$0.77
$0.66
$0.72
$0.58
$1.44
$0.98
$0.29
$1.37
$0.04
$0.09
$0.51
$7.45
Allston/Brighton
$0.68
$1.33
$1.22
$0.46
$1.22
$1.39
$0.39
$0.83
$0.04
$0.09
$0.52
$8.17
Back Bay/South End
$0.67
$1.32
$1.22
$0.46
$1.19
$1.38
$0.39
$0.80
$0.04
$0.09
$0.51
$8.07
Brookline/Newton…
$0.82
$0.88
$0.35
$0.57
$1.53
$1.12
$0.65
$1.57
$0.04
$0.09
$0.51
$8.13
Charlestown
$0.66
$1.32
$1.22
$0.46
$1.18
$1.38
$0.39
$0.80
$0.04
$0.09
$0.51
$8.05
Downtown Boston
$0.68
$1.32
$1.22
$0.46
$1.21
$1.39
$0.39
$0.82
$0.04
$0.09
$0.52
$8.14
Everett/Malden/Med… $0.77
$0.68
$0.60
$0.61
$1.45
$1.00
$0.30
$1.47
$0.04
$0.09
$0.52
$7.53
Fenway/Mission Hill
$0.73
$1.21
$1.01
$0.50
$1.31
$1.36
$0.46
$1.03
$0.04
$0.09
$0.52
$8.26
Greater Merrimack…
$0.57
$1.13
$0.75
$0.30
$0.72
$0.89
$0.29
$1.02
$0.04
$0.09
$0.51
$6.31
Harvard/Central/Ke…
$0.77
$0.68
$0.61
$0.68
$1.45
$1.02
$0.30
$1.46
$0.04
$0.09
$0.51
$7.61
Metro West
$0.77
$0.38
$0.70
$0.61
$1.54
$0.53
$0.27
$1.56
$0.04
$0.09
$0.51
$7.00
New Hampshire Be…
$0.57
$1.28
$0.87
$0.52
$1.24
$0.90
$0.36
$1.79
$0.04
$0.09
$0.51
$8.17
North Cambridge-S…
$0.76
$0.68
$0.62
$0.62
$1.43
$0.99
$0.30
$1.42
$0.04
$0.09
$0.51
$7.46
North Shore
$0.48
$0.71
$0.71
$0.38
$1.02
$0.73
$0.22
$1.00
$0.04
$0.09
$0.52
$5.90
Quincy/Milton/Rand…
$0.82
$0.88
$0.35
$0.75
$1.46
$1.27
$0.39
$1.57
$0.04
$0.09
$0.51
$8.13
Route 1 North
$0.67
$1.32
$1.22
$0.46
$1.18
$1.38
$0.39
$0.80
$0.04
$0.09
$0.51
$8.06
Route 1 South
$0.82
$0.88
$0.35
$0.75
$1.46
$1.53
$0.37
$1.57
$0.04
$0.09
$0.51
$8.37
South Boston/Seaport
$0.67
$1.19
$1.22
$0.46
$1.19
$1.39
$0.48
$0.82
$0.04
$0.09
$0.52
$8.07
South Plymouth Co…
$0.67
$1.28
$0.87
$0.62
$1.42
$1.33
$0.41
$1.37
$0.04
$0.09
$0.51
$8.61
South Shore
$0.82
$1.10
$0.42
$1.05
$1.63
$1.25
$0.29
$1.24
$0.04
$0.09
$0.51
$8.44
South Suffolk County
$0.58
$1.16
$1.22
$0.46
$0.87
$1.38
$0.39
$0.55
$0.04
$0.09
$0.51
$7.25
Strafford County
$0.57
$1.28
$0.87
$0.52
$1.24
$0.90
$0.36
$1.79
$0.04
$0.09
$0.51
$8.17
Suburban Rockingh…
$0.57
$1.28
$0.87
$0.52
$1.24
$0.90
$0.36
$1.79
$0.04
$0.09
$0.51
$8.17
Waltham/Arlington…
$0.76
$0.67
$0.60
$0.61
$1.45
$0.98
$0.30
$1.46
$0.04
$0.09
$0.52
$7.48
Boston
Appliance Structural
Expenses are estimated using NCREIF, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.
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Page 11
Construction Boston Multi-Family Supposedly, Boston is hard to build in, but not for multifamily in this cycle. We'd have to go back to the 1920s to find apartment inventory growth like this in Beantown. This new product has a chance to redefine neighborhoods and bring Boston’s housing stock up to par with that of other major cities. Supply has been heavy in Downtown Boston and early in the cycle in Chinatown, with the AVA Theater District and One Greenway projects delivering more than 600 units in 2015. Significant development has since shifted to the area around North Station/Government Center. In 2017, Avalon Bay delivered its 503-unit North Station tower, which will be followed by three more 400-unit-plus developments from the likes of Boston Properties, Equity Residential, and HYM Investments. The Fenway/Mission Hill Submarket is seeing a multitude of units move through the pipeline from developments along Boylston Street (Pierce Boston and the Harlo) to plans for redevelopment of underutilized sites as well as for the air rights over the Mass Pike. The South Boston/Seaport Submarket is teeming with development as that neighborhood continues to rapidly emerge. With so much construction in the area, renters will have an entirely new stock of apartments to look at, and lifestyle/neighborhood decisions will be paramount when shelling out $3,000/month for a one-bedroom unit.
metro. In exchange for transportation funding, the MBTA has allowed developers to construct housing units over a variety of state-owned properties, ranging from Back Bay Station to Quincy Center. TH Real Estate and Gerdling Edlen recently broke ground on their longawaited Fenway Center project, the first air rights development over the Mass Pike since the 1980s. Local government may soon open up further sites for residential development, some of which diverge from the typical apartment site. The Walsh administration recently put out a “request for interest” to residential developers for 83 city-owned buildings ranging from aging libraries, community centers, and firehouses.
Cambridge and the ’burbs are seeing their share of new development, too, with the area around Alewife (along the Red Line) as well as the East Cambridge neighborhood lately the focal points of construction. These areas, which once lacked institutional product, delivered a combined 1,700 units over the past two years. Catering to an audience that differs from urban dwellers, developers are active across suburban Boston as well. Overall, the pipeline is at full bore with more than 18,000 units underway across the metro.
The housing market in Boston and a number of metros is extremely strong right now and the question among many is why haven’t we seen more condo construction? The lack of construction may be the result of the banks, who view the condo market as a lot more risky than the apartment market and because of this their equity requirement is much higher. For many developers thinking condos this often a deal breaker and they build apartments instead. However, there have been a few developers that recently switched from apartments to condos, but only a piece of the project, likely as way to get around the hefty equity requirement. For example, HYM Investments recently decided to convert 118 units out of 486 into 55 condos, in its giant project downtown at the perimeter of the Financial District. Additionally, National Development, converted a portion of its Ink Block project from rentals to condos and Related Beal did the same with Lovejoy Wharf.
As many of the best urban infill sites have been picked over, demand has been strong enough to justify construction in ever more creative locations. Parking garages have become increasingly popular targets for development, and in Downtown Boston alone more than six garages are being converted or will be converted to residential uses. Projects over existing transportation hubs and thoroughfares have also appeared across the
The immense amount of apartment construction is causing projects to take longer and longer to complete, because construction companies have to focus on multiple projects simultaneously and fight for labor. For example, according to CoStar’s construction pipeline, in 2013 a mid-rise project took 406 days from first steel to certificate of occupancy. In 2015 that number jumped to 494 days, in 2017 projects averaged 545 days. It’s the same story for other construction styles in Boston, as low-rise projects have moved from 372 days in 2013 to 534 in 2017 and high-rise projects have moved from 566 days to 800.
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Page 12
Construction Boston Multi-Family DELIVERIES & DEMOLITIONS
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Page 13
Under Construction Properties Boston Multi-Family Properties
Units
Percent of Inventory
Avg. No. Units
116
19,020
9.6%
164
UNDER CONSTRUCTION PROPERTIES
UNDER CONSTRUCTION Property Name/Address
Rating
Units
Stories
Start
Complete
1
Echelon Seaport 152 Seaport Blvd
717
21
Mar-2017
Jan-2020
2
Washington Village 235 Old Colony Ave
656
21
Sep-2017
May-2019
3
Harrison Albany Block 123 E Dedham St
650
11
May-2018
Jun-2020
4
Clippership Wharf 25-65 Lewis St
478
6
Jan-2017
Sep-2018
5
South Bay Town Center 101 Allstate Rd
475
6
Oct-2017
Aug-2018
6
The Hub on Causeway W… 80 Causeway St
440
38
Mar-2018
Oct-2020
7
Bulfinch Crossing 100 Sudbury St
423
45
Mar-2018
Jun-2020
Developer/Owner
Cottonwood Management, LLC Core Investments, Inc. The City of Boston The Bozzuto Group Leggat McCall Properties LLC LendLease US Services Inc. LendLease US Services Inc. EDENS EDENS Boston Properties Limited Partne… Boston Properties Limited Partne… HYM Investment Group HYM Investment Group
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Page 14
Under Construction Properties Boston Multi-Family UNDER CONSTRUCTION Property Name/Address
Rating
Units
Stories
Start
Complete
8
399 Congress 399 Congress St
414
22
Apr-2018
Oct-2019
9
The Kendrick 275 2nd Ave
390
4
May-2017
Jun-2019
10
Second Avenue Residen… 156 B St
390
5
Jun-2017
Jun-2019
11
Whittier Choice 1 Whittier St
387
15
Mar-2018
Oct-2019
12
345 Harrison Phase II 345 Harrison Ave
384
14
Dec-2016
Jul-2018
13
Aspen Regency 147 Rangeway Rd
384
-
Dec-2016
Sep-2018
14
Jefferson at Malden Center 200 Pleasant St
320
6
Mar-2017
Dec-2018
15
Fenway Center - Phase I Brookline Ave
312
13
Jan-2018
Oct-2019
16
Mass+Main 425 Massachusetts Ave
308
19
Nov-2017
Jan-2019
17
Gables Seaport 501 Congress St
307
23
Apr-2018
Oct-2019
305
25
Apr-2017
Nov-2019
18
400 Ocean Ave
19
Parcel K 315 Northern Ave
304
12
Mar-2018
Jul-2019
20
Kendall Square 290-292 Main St
290
28
Oct-2017
Mar-2019
21
Residences at MacGrego… 6 MacGregor Ct
288
3
May-2017
Sep-2018
22
The Pioneer 1760 Revere Beach Pky
286
6
Jun-2017
Sep-2018
23
Elan Watertown 56 Irving St
282
4
Dec-2016
Aug-2018
24
Weston Woods 1330-1342 W Central St
280
4
Aug-2016
Dec-2018
25
Proto 88 Ames St
280
22
Dec-2016
Aug-2018
26
Pac 10 Lofts 5 Franklin St
276
6
Oct-2017
Apr-2019
27
Quarry Hills II 200 Ricciuti Dr
269
5
Dec-2017
Jul-2019
28
Cooper Street Apartments 20 Cooper St
264
5
Jun-2016
Oct-2018
Developer/Owner
Crescent Heights Crescent Heights Toll Brothers. Inc. Toll Brothers Apartment Living Toll Brothers. Inc. Boston Housing Authority Preservation of Affordable Housin… Nordblom Company UDR, Inc. Garden Communities Garden Homes Jefferson Apartment Group Jefferson Apartment Group Meredith Management Corporation Meredith Management Twining Properties Twining Properties The Drew Co. The Drew Co. Gate Residential Properties LLC Gate Residential Properties LLC Lincoln Property Company Massachusetts Port Authority Massachusetts Institute of Techn… Massachusetts Institute of Techn… First Londonderry Assoc Post Road Residential Inc. Post Road Residential Inc. Greystar Real Estate Partners Greystar Real Estate Partners Acme Jazz Llc Wood Partners Boston Properties Limited Partne… Boston Properties Limited Partne… Reed Realty Group Reed Realty Group Quarry Hills Development, LLC Quarry Hills Development, LLC Daiwa House Industry Co., Inc. Lincoln Property Company
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Page 15
Sales Boston Multi-Family In comparison to the other seven prime metros, Boston ranks dead last in terms of total sales volume from 2011 to 2017, though not too far behind San Francisco. Much of this is because much Boston’s rental housing is not in large buildings, but in small ones with less than five units which are not included in our inventory. However, the trend in Boston is similar to most metros, in that volume peaked here in 2015 and has been down marginally each year since then. Unlike most prior times there has been a decline, this not viewed by investors as weakness in the market, or a drop in interest from buyers. Instead, what's happening is that we are almost nine years into this cycle and many assets have been purchased by long term holders of investments such as REITs and pension funds, rather than private equity with finite hold periods. Add in the fact that prices are at alltime highs and it creates a situation where few owners want to sell because they're worried about reinvestment risk, it's hard to find another investment with the same return. In terms of inventory turnover for the prime metros,
Boston ranks sixth out, just a hair above San Francisco. However, all these metros are extremely liquid and Boston’s turnover ratio of 135%, is far above the typical U.S. metro which averages 16%. These ratios are calculated by taking the units traded from 2011 to 2017 and dividing them by the average inventory over that period. The submarket with the most investment volume over this period was North Cambridge-Somerville with $1.1 billion in trades, or 8% of metro deal volume This submarket is a slightly smaller than average submarket accounting for 2% of metro inventory, compared to the typical submarket in the metro with 4% of metro inventory, so it’s really punching above its weight. This submarket is also far more expensive with an average price of $373 compared to $207 for the entire metro from 2011 to 2017. Other submarkets with heavy volume were Quincy/Milton/Randolph, Harvard/Central/Kendall/Cambridge, and Greater Merrimack Valley which is the largest submarket with 10% of inventory
SALES VOLUME & MARKET SALE PRICE PER UNIT
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Sales Past 12 Months Boston Multi-Family Sale Comparables
Avg. Price/Unit (thous.)
Average Price (mil.)
Average Vacancy at Sale
264
$321
$14.0
5.9%
SALE COMPARABLE LOCATIONS
SALE COMPARABLES SUMMARY STATISTICS Sales Attributes
Low
Average
Median
High
Sale Price
$457,000
$13,972,451
$2,200,000
$359,488,874
Price Per Unit
$13,796
$320,644
$200,000
$1,571,428
3.0%
5.7%
5.4%
10.6%
Vacancy Rate at Sale
0%
5.9%
0%
83.3%
Time Since Sale in Months
0.3
6.1
5.7
11.9
Property Attributes
Low
Average
Median
High
Property Size in Units
5
41
8
696
Number of Floors
1
3
3
21
Average Unit SF
0
816
871
1,338
1790
1927
1918
2019
Cap Rate
Year Built Star Rating
2.5
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Page 17
Sales Past 12 Months Boston Multi-Family RECENT SIGNIFICANT SALES Property Information Property Name/Address
1
The Zinc 22-24 Water St
2
Watermark Seaport 85 Seaport Blvd
3
Gardencrest Apartments 20 Middlesex Cir
4
Cambridge Park Apartments 30 Cambridge Park Dr
5
Harborview at the Navy Yard 250 1st Ave
6
Tower at One Greenway 99 Kneeland St
7
Stone Gate 65 Silver Leaf Way
8
Prynne Hills 1 Avalon Dr
9
Fuse Cambridge 165 Cambridgepark Dr
10
Girard 50 Malden St
11
Bell Olmsted Park 161 S Huntington Ave
12
One Upland 1 Upland Woods Cir
13
Everly 14 Audubon Rd
14
The Washingtons 2 Washington St
15
Hanover at The Pinehills 40 Pinehills Dr
16
Cliffside Commons 500 Broadway
14
The Washingtons 2 Washington St
17
The Point at North Quincy 95 W Squantum St
18
Vanguard Waterfront Square 660 Ocean Ave
19
The Estates 1 Avalon Dr
Sale Information
Rating
Yr Built
Units
Vacancy
Sale Date
Price
Price/Unit
Price/SF
-
2015
392
3.3%
9/19/2017
$359,488,874
$917,063
$899
-
2016
346
7.8%
1/1/2018
$238,750,000
$690,028
$543
-
1948
696
6.0%
11/30/2017
$194,543,761
$279,516
$296
-
2003
312
4.2%
6/30/2017
$168,000,000
$538,461
$485
-
2007
224
4.0%
8/10/2017
$149,250,000
$666,294
$352
-
2015
217
3.2%
11/17/2017
$144,500,000
$665,898
$796
-
2007
332
2.1%
9/19/2017
$138,617,917
$417,523
$219
-
2013
472
2.5%
5/29/2018
$131,250,000
$278,072
$277
-
2016
244
3.3%
3/22/2018
$127,500,000
$522,540
$623
-
2016
160
14.8%
8/21/2017
$116,400,000
$727,500
$485
-
2015
196
24.4%
7/19/2017
$103,250,000
$526,785
$401
-
2016
262
14.1%
10/20/2017
$93,000,000
$354,961
$369
-
2014
186
5.9%
9/19/2017
$89,022,677
$478,616
$462
-
2015
182
12.9%
8/3/2017
$75,000,000
$412,087
$577
-
2016
220
7.7%
11/6/2017
$71,800,000
$326,363
$671
-
2000
295
10.5%
10/3/2017
$71,000,000
$240,677
$196
-
2015
182
12.9%
9/19/2017
$70,945,938
$389,812
$546
-
1976
224
2.2%
5/31/2018
$64,250,000
$286,830
$275
-
2016
194
31.4%
10/6/2017
$59,850,000
$308,505
$386
-
2000
162
6.8%
7/27/2017
$47,150,000
$291,049
$208
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Page 18
Economy Boston Multi-Family It may not feel like the late 1990s, when job growth in Boston was at it's peak, but the economy here is humming along pretty well. Annual growth in Boston has been hovering around 2% since the end of 2011, above the metro’s expansion during the last growth cycle (2004–07) of about 1.4%. In fact, job growth during the tech boom wasn’t that much better over its best fouryear (1997–2001) stretch than what Boston has experienced over the past four years. Unemployment in the metro is coming off its lowest rate in 15 years, and is almost 150 basis points below that of the national average. As a result of Boston’s economic vigor, the total number of people employed reached a new high in 2013, finally topping the previous high achieved in 2001. This level now stands 10% higher than it did in 2013 and is a strong driver of demand across multiple property types. The largest employment sector in Boston is education and health services. This is not uncommon in an old and large metro, but Boston takes the cake with the highest concentration in this sector in the 50 largest U.S. metros, if not more. Health services is the larger of the two subsectors, accounting for 80% of the sector’s jobs, driven in large part by the metro’s hospitals. While this sector is the largest employer in the metro, it’s not the most dynamic. Growth rarely gets above 4% but, on the flipside, has not seen two consecutive quarters of losses since the mid-1970s. So while this sector is great to be concentrated in when the economy is in recession, it’s not going to be a bastion of job growth when things are hot. That honor goes to professional business services, which in Boston means high tech. If education and healthcare is the yin, then high tech is the yang. Employment in high-tech has seen annual changes of more than 10% on more than one occasion. Over the past five years, growth has been unusually steady, averaging almost 3% annually, or—to put it in perspective—a little over 100 basis points above growth in total employment for the U.S. average. Over the years, companies have moved to Boston to take advantage of its rich pool of tech talent, and in one of the more prominent examples, GE announced in early 2016 that it was moving here from Fairfield, CT. GE had other suitors, including New York, which, per the Wall Street Journal, made an aggressive effort led by Governor Andrew Cuomo, but GE chose Boston because of its plethora of highly educated and skilled workers. Undoubtedly, this choice was made easier by tax incentives offered by both the city of Boston and the state of Massachusetts. In fact, according to Reuters, “even though Massachusetts is called ‘Taxachusetts’ it
ranked 25th in 2016 Tax Foundation survey,” while Connecticut ranked near the bottom at 44th. GE and 800 of its employees will put their imagination to work in the Seaport, home to Boston’s Innovation District, which is finally coming into its own. According the Boston Globe "several smaller companies have moved their headquarters to the area in recent months" and it would not be surprising if other companies tied to GE make the move. In yet another big story for the Seaport, in December 2016, Reebok announced that it will be moving from Canton (15 miles south of Boston) to the Seaport, taking down 220,000 SF and bringing 700 more jobs to this red-hot submarket. The reason for the move was simple: Reebok could not attract enough talented people to a sleepy suburb of Boston. What is truly interesting is that this location is at the far end of the Seaport, about three quarters of a mile from where all the other building in the submarket is taking place. Reebok’s new location is a good 20-minute walk from South Station, the closet true subway stop and their relocation sends the message that all of the Seaport is in play and able to land first-rate tenants Growth in construction employment is currently as good as it’s been in the metro since the 1990s, enjoying the best rate of expansion of any of Boston’s super sectors. At the end of 2015, construction employment growth reached a whopping 10% annually, though it has since come down to about 4% which is still double the rate of growth of metrowide employment. The tremendous expansion of construction jobs has been driven by an extremely strong housing market within Route 128 and a staggering amount of apartment construction. However, construction employment is a smaller component of Boston’s total employment than it is in the average U.S. metro, so this superb growth will not have a big ripple effect. Lastly, one side effect of this growth is that construction costs have been rising and one of the region's largest construction companies has started advising clients to expect costs to rise by 1% per month, through the end of 2017, due to the cost of labor. Despite the cheery story that is the Boston economy right now, not every sector is enjoying robust growth. Financial activities is a good example of that, as the number of jobs in that sector finally back to the high it achieved in 2007 in the beginning of 2017, and both totals are still a little below the high achieved in 2001. Many of these jobs are in mutual fund custodial firms such as JPM, BBH, MFS, and State Street. Boston was home to the first mutual fund, and while many of the portfolio management jobs are in New York, the 1940
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Page 19
Economy Boston Multi-Family Act, which regulates modern mutual funds, requires that securities are held by an outside custodian (because many funds cooked their books in the 1920s) and Boston is home to many of these and to the additional services
they offer. Over the years, due to automation and outsourcing of low-end tasks to India, this sector in Boston hasn’t enjoyed the growth seen by financial activities in other U.S. metros.
BOSTON EMPLOYMENT BY INDUSTRY IN THOUSANDS Current Jobs
Current Growth
10 Yr Historical
5 Yr Forecast
NAICS Industry
Jobs
LQ
Market
US
Market
US
Market
US
Manufacturing
177
0.8
1.41%
-0.41%
-1.21%
-1.06%
-1.06%
-1.24%
Trade, Transportation and Utilities
424
0.8
0.09%
1.28%
0.23%
0.45%
0.36%
0.26%
255
0.9
-1.07%
0.48%
0.32%
0.34%
0.48%
0.27%
Financial Activities
196
1.2
0.02%
0.64%
0.11%
0.27%
0.27%
0.76%
Government
313
0.7
-0.86%
0.10%
0.28%
-0.06%
0.39%
0.52%
Natural Resources, Mining and Construction
120
0.8
7.77%
3.93%
1.95%
-0.27%
1.36%
1.60%
Education and Health Services
581
1.3
0.97%
1.56%
2.08%
2.03%
0.75%
1.27%
Professional and Business Services
500
1.3
2.56%
2.49%
1.68%
1.55%
1.34%
1.48%
Information
79
1.5
-1.98%
0.54%
0.20%
-0.94%
0.01%
0.29%
Leisure and Hospitality
275
0.9
2.29%
1.77%
2.24%
1.80%
0.77%
1.29%
Other Services
105
1.0
1.94%
0.73%
1.44%
0.44%
-0.04%
0.41%
Total Employment
2,768
1.0
1.22%
1.28%
1.04%
0.70%
0.59%
0.79%
Retail Trade
Source: Moody's Analytics LQ = Location Quotient
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Page 20
Economy Boston Multi-Family YEAR OVER YEAR JOB GROWTH
Source: Moody’s Analytics
DEMOGRAPHIC TRENDS Current Level Demographic Category
Current Change
10-Year Change
Forecast Change
Metro
U.S.
Metro
U.S.
Metro
U.S.
Metro
U.S.
Population
4,857,975
327,863,342
0.6%
0.7%
0.8%
0.8%
0.5%
0.7%
Households
1,893,920
126,048,680
0.7%
1.0%
0.8%
0.8%
0.9%
1.1%
$88,585
$60,656
3.7%
3.5%
2.3%
1.6%
3.1%
3.0%
2,654,516
161,638,901
-0.3%
1.0%
0.9%
0.5%
0.6%
0.8%
3.3%
4.1%
-0.3%
-0.3%
-0.1%
-0.1%
-
-
Median Household Income Labor Force Unemployment
Source: Moody’s Analytics
POPULATION GROWTH
LABOR FORCE GROWTH
INCOME GROWTH
Source: Moody's Analytics
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Page 21
Submarkets Boston Multi-Family BOSTON SUBMARKETS
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Page 22
Submarkets Boston Multi-Family SUBMARKET INVENTORY Inventory
12 Month Deliveries
Under Construction
No.
Submarket
Bldgs
Units
% Market
Rank
Bldgs
Units
Percent
Rank
Bldgs
Units
Percent
Rank
1
495-North
49
3,649
1.8%
24
1
244
6.7%
11
0
0
0%
-
2
495-South
44
3,934
2.0%
22
3
841
21.4%
1
3
604
15.4%
13
3
95-North
116
9,597
4.9%
6
3
197
2.1%
13
1
199
2.1%
22
4
Allston/Brighton
232
8,068
4.1%
14
4
498
6.2%
6
3
240
3.0%
20
5
Back Bay/South End
313
8,472
4.3%
10
0
200
2.4%
12
5
1,133
13.4%
7
6
Brookline/Newton/Watert…
210
8,330
4.2%
12
1
88
1.1%
19
3
565
6.8%
14
7
Charlestown
14
764
0.4%
26
0
0
0%
-
3
348
45.5%
17
8
Downtown Boston
249
8,493
4.3%
9
(1)
0
0%
-
2
808
9.5%
10
9
Everett/Malden/Medford…
181
9,131
4.6%
7
4
464
5.1%
7
4
715
7.8%
11
10
Fenway/Mission Hill
173
8,960
4.5%
8
4
594
6.6%
3
3
390
4.4%
16
11
Greater Merrimack Valley
476
19,093
9.7%
1
3
353
1.8%
8
9
1,530
8.0%
3
12
Harvard/Central/Kendall…
288
8,085
4.1%
13
1
194
2.4%
14
6
1,145
14.2%
6
13
Metro West
152
11,068
5.6%
3
2
55
0.5%
22
5
1,315
11.9%
4
14
New Hampshire Beaches
61
3,167
1.6%
25
1
95
3.0%
18
0
0
0%
-
15
North Cambridge-Somerv…
121
5,576
2.8%
19
2
276
4.9%
9
8
939
16.8%
8
16
North Shore
284
8,428
4.3%
11
1
72
0.9%
20
3
211
2.5%
21
17
Quincy/Milton/Randolph
176
9,647
4.9%
5
4
558
5.8%
5
6
928
9.6%
9
18
Route 1 North
322
11,268
5.7%
2
5
773
6.9%
2
8
1,220
10.8%
5
19
Route 1 South
103
7,764
3.9%
16
1
124
1.6%
17
2
269
3.5%
19
20
South Boston/Seaport
62
4,139
2.1%
20
3
566
13.7%
4
12
2,158
52.1%
1
21
South Plymouth County
177
5,991
3.0%
18
3
166
2.8%
15
2
186
3.1%
23
22
South Shore
119
8,032
4.1%
15
3
259
3.2%
10
4
657
8.2%
12
23
South Suffolk County
414
10,567
5.4%
4
4
69
0.7%
21
18
1,876
17.8%
2
24
Strafford County
106
3,723
1.9%
23
1
144
3.9%
16
1
130
3.5%
24
25
Suburban Rockingham C…
95
3,977
2.0%
21
1
18
0.5%
24
2
544
13.7%
15
26
Waltham/Arlington/Belmont
216
7,328
3.7%
17
1
44
0.6%
23
2
328
4.5%
18
6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.
Page 23
Submarkets Boston Multi-Family SUBMARKET RENT Asking Rents
Effective Rents
No.
Submarket
Per Unit
Per SF
Rank
Yr. Growth
Per Unit
Per SF
Rank
Yr. Growth
Concession
Rank
1
495-North
$2,058
$2.10
17
3.9%
$2,025
$2.07
17
3.1%
1.6%
9
2
495-South
$1,742
$1.95
21
3.1%
$1,695
$1.90
22
0.8%
2.7%
3
3
95-North
$2,194
$2.26
15
3.1%
$2,181
$2.24
15
3.4%
0.6%
20
4
Allston/Brighton
$2,302
$3.02
8
2.0%
$2,289
$3.00
8
3.0%
0.5%
23
5
Back Bay/South End
$3,750
$4.41
1
6.7%
$3,709
$4.37
1
7.1%
1.1%
15
6
Brookline/Newton/Watert…
$2,689
$2.86
9
0.7%
$2,609
$2.77
9
-0.4%
3.0%
2
7
Charlestown
$3,130
$3.42
6
3.5%
$3,073
$3.36
6
2.9%
1.8%
7
8
Downtown Boston
$3,478
$3.99
3
3.8%
$3,405
$3.90
3
4.9%
2.1%
6
9
Everett/Malden/Medford…
$2,242
$2.49
10
4.3%
$2,189
$2.44
12
3.4%
2.4%
4
10
Fenway/Mission Hill
$2,948
$3.84
5
2.5%
$2,901
$3.77
5
2.1%
1.6%
10
11
Greater Merrimack Valley
$1,625
$1.81
23
3.3%
$1,616
$1.80
23
4.0%
0.6%
22
12
Harvard/Central/Kendall…
$3,104
$3.88
4
1.2%
$3,085
$3.85
4
1.9%
0.6%
19
13
Metro West
$1,847
$2.07
18
3.0%
$1,833
$2.06
18
3.1%
0.8%
16
14
New Hampshire Beaches
$1,429
$1.69
24
6.7%
$1,422
$1.68
24
6.4%
0.5%
24
15
North Cambridge-Somerv…
$2,643
$3.13
7
3.2%
$2,598
$3.08
7
4.5%
1.7%
8
16
North Shore
$1,872
$2.03
19
4.8%
$1,862
$2.02
19
5.6%
0.5%
25
17
Quincy/Milton/Randolph
$2,037
$2.32
14
1.6%
$2,007
$2.29
13
1.3%
1.5%
11
18
Route 1 North
$1,944
$2.33
13
2.2%
$1,900
$2.28
14
3.0%
2.3%
5
19
Route 1 South
$2,042
$2.16
16
4.3%
$2,014
$2.13
16
4.8%
1.3%
12
20
South Boston/Seaport
$3,584
$4.33
2
3.4%
$3,393
$4.10
2
0.4%
5.3%
1
21
South Plymouth County
$1,688
$1.93
22
6.1%
$1,678
$1.92
21
6.2%
0.6%
18
22
South Shore
$1,941
$2.03
20
2.0%
$1,930
$2.01
20
1.9%
0.6%
21
23
South Suffolk County
$2,029
$2.49
11
0.3%
$2,004
$2.46
11
1.1%
1.2%
13
24
Strafford County
$1,134
$1.36
26
2.9%
$1,121
$1.34
26
2.6%
1.1%
14
25
Suburban Rockingham C…
$1,320
$1.57
25
3.5%
$1,318
$1.57
25
3.7%
0.1%
26
26
Waltham/Arlington/Belmont
$2,394
$2.48
12
1.7%
$2,378
$2.46
10
2.0%
0.7%
17
6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.
Page 24
Submarkets Boston Multi-Family SUBMARKET VACANCY & ABSORPTION Vacancy
12 Month Absorption
No.
Submarket
Units
Percent
Rank
Units
% of Inv
Rank
Construct. Ratio
1
495-North
152
4.2%
9
320
8.8%
8
0.8
2
495-South
592
15.0%
26
586
14.9%
3
1.4
3
95-North
447
4.7%
14
256
2.7%
11
0.6
4
Allston/Brighton
480
5.9%
21
259
3.2%
10
1.9
5
Back Bay/South End
359
4.2%
10
128
1.5%
17
1.1
6
Brookline/Newton/Watert…
485
5.8%
19
123
1.5%
19
0.7
7
Charlestown
37
4.9%
15
(3)
-0.4%
26
-
8
Downtown Boston
318
3.7%
8
73
0.9%
23
-
9
Everett/Malden/Medford…
500
5.5%
16
709
7.8%
2
0.6
10
Fenway/Mission Hill
510
5.7%
18
354
4.0%
7
1.7
11
Greater Merrimack Valley
713
3.7%
7
467
2.4%
6
0.6
12
Harvard/Central/Kendall…
457
5.7%
17
211
2.6%
12
0.9
13
Metro West
393
3.5%
6
188
1.7%
13
0.3
14
New Hampshire Beaches
64
2.0%
2
108
3.4%
20
0.9
15
North Cambridge-Somerv…
401
7.2%
23
301
5.4%
9
0.8
16
North Shore
268
3.2%
5
99
1.2%
21
0.7
17
Quincy/Milton/Randolph
701
7.3%
24
497
5.2%
5
1.0
18
Route 1 North
728
6.5%
22
843
7.5%
1
0.9
19
Route 1 South
339
4.4%
11
73
0.9%
22
-
20
South Boston/Seaport
350
8.4%
25
560
13.5%
4
0.9
21
South Plymouth County
150
2.5%
3
173
2.9%
14
1.0
22
South Shore
468
5.8%
20
72
0.9%
24
3.4
23
South Suffolk County
491
4.6%
12
171
1.6%
15
0.2
24
Strafford County
113
3.0%
4
126
3.4%
18
1.1
25
Suburban Rockingham C…
75
1.9%
1
33
0.8%
25
-
26
Waltham/Arlington/Belmont
341
4.7%
13
139
1.9%
16
-
6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.
Page 25
Appendix Boston Multi-Family OVERALL SUPPLY & DEMAND Inventory
Absorption
Year
Units
Growth
% Growth
Units
% of Inv
Construction Ratio
2022
231,361
5,960
2.6%
5,700
2.5%
1.0
2021
225,401
5,883
2.7%
5,567
2.5%
1.1
2020
219,518
7,189
3.4%
6,797
3.1%
1.1
2019
212,329
9,446
4.7%
7,224
3.4%
1.3
2018
202,883
8,085
4.2%
7,924
3.9%
1.0
YTD
197,251
2,453
1.3%
3,550
1.8%
0.7
2017
194,798
7,199
3.8%
5,892
3.0%
1.2
2016
187,599
6,782
3.8%
6,925
3.7%
1.0
2015
180,817
7,996
4.6%
6,103
3.4%
1.3
2014
172,821
5,579
3.3%
6,246
3.6%
0.9
2013
167,242
4,117
2.5%
3,336
2.0%
1.2
2012
163,125
2,013
1.2%
1,756
1.1%
1.1
2011
161,112
60
0%
(106)
-0.1%
-
2010
161,052
734
0.5%
1,706
1.1%
0.4
2009
160,318
3,901
2.5%
3,965
2.5%
1.0
2008
156,417
2,655
1.7%
2,631
1.7%
1.0
2007
153,762
5,219
3.5%
4,711
3.1%
1.1
2006
148,543
5,662
4.0%
5,413
3.6%
1.0
4 & 5 STAR SUPPLY & DEMAND Inventory
Absorption
Year
Units
Growth
% Growth
Units
% of Inv
Construction Ratio
2022
99,370
6,018
6.4%
5,688
5.7%
1.1
2021
93,352
5,940
6.8%
5,759
6.2%
1.0
2020
87,412
6,686
8.3%
6,733
7.7%
1.0
2019
80,726
8,206
11.3%
6,687
8.3%
1.2
2018
72,520
6,371
9.6%
6,038
8.3%
1.1
YTD
68,521
2,372
3.6%
2,808
4.1%
0.8
2017
66,149
6,531
11.0%
5,346
8.1%
1.2
2016
59,618
6,265
11.7%
6,437
10.8%
1.0
2015
53,353
7,654
16.7%
5,283
9.9%
1.4
2014
45,699
5,481
13.6%
5,722
12.5%
1.0
2013
40,218
3,846
10.6%
2,851
7.1%
1.3
2012
36,372
1,818
5.3%
1,420
3.9%
1.3
2011
34,554
53
0.2%
29
0.1%
1.8
2010
34,501
627
1.9%
941
2.7%
0.7
2009
33,874
3,042
9.9%
2,955
8.7%
1.0
2008
30,832
2,354
8.3%
2,669
8.7%
0.9
2007
28,478
4,943
21.0%
4,526
15.9%
1.1
2006
23,535
5,295
29.0%
5,006
21.3%
1.1
6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.
Page 26
Appendix Boston Multi-Family 3 STAR SUPPLY & DEMAND Inventory
Absorption
Year
Units
Growth
% Growth
Units
% of Inv
Construction Ratio
2022
75,479
0
0%
42
0.1%
0
2021
75,479
0
0%
(44)
-0.1%
0
2020
75,479
563
0.8%
410
0.5%
1.4
2019
74,916
1,289
1.8%
842
1.1%
1.5
2018
73,627
1,691
2.4%
1,803
2.4%
0.9
YTD
72,017
81
0.1%
590
0.8%
0.1
2017
71,936
668
0.9%
393
0.5%
1.7
2016
71,268
517
0.7%
431
0.6%
1.2
2015
70,751
342
0.5%
590
0.8%
0.6
2014
70,409
203
0.3%
452
0.6%
0.4
2013
70,206
276
0.4%
252
0.4%
1.1
2012
69,930
162
0.2%
265
0.4%
0.6
2011
69,768
22
0%
(68)
-0.1%
-
2010
69,746
113
0.2%
532
0.8%
0.2
2009
69,633
875
1.3%
918
1.3%
1.0
2008
68,758
252
0.4%
38
0.1%
6.6
2007
68,506
249
0.4%
297
0.4%
0.8
2006
68,257
367
0.5%
306
0.4%
1.2
1 & 2 STAR SUPPLY & DEMAND Inventory
Absorption
Year
Units
Growth
% Growth
Units
% of Inv
Construction Ratio
2022
56,512
(58)
-0.1%
(30)
-0.1%
1.9
2021
56,570
(57)
-0.1%
(148)
-0.3%
0.4
2020
56,627
(60)
-0.1%
(346)
-0.6%
0.2
2019
56,687
(49)
-0.1%
(305)
-0.5%
0.2
2018
56,736
23
0%
83
0.1%
0.3
YTD
56,713
0
0%
152
0.3%
0
2017
56,713
0
0%
153
0.3%
0
2016
56,713
0
0%
57
0.1%
0
2015
56,713
0
0%
230
0.4%
0
2014
56,713
(105)
-0.2%
72
0.1%
-
2013
56,818
(5)
0%
233
0.4%
0
2012
56,823
33
0.1%
71
0.1%
0.5
2011
56,790
(15)
0%
(67)
-0.1%
0.2
2010
56,805
(6)
0%
233
0.4%
0
2009
56,811
(16)
0%
92
0.2%
-
2008
56,827
49
0.1%
(76)
-0.1%
-
2007
56,778
27
0%
(112)
-0.2%
-
2006
56,751
0
0%
101
0.2%
0
6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.
Page 27
Appendix Boston Multi-Family OVERALL VACANCY & RENT Vacancy
Asking Rent
Effective Rent
Year
Units
Percent
Ppts Chg
Per Unit
Per SF
% Growth
Ppts Chg
Per Unit
Per SF
2022
14,357
6.3%
(0.1)
$2,371
-
1.3%
0.1
$2,339
-
2021
14,098
6.4%
0
$2,341
-
1.2%
0.4
$2,309
-
2020
13,780
6.4%
0
$2,312
-
0.8%
(0.7)
$2,281
-
2019
13,388
6.5%
0.9
$2,293
-
1.6%
(3.9)
$2,262
-
2018
11,166
5.5%
(0.2)
$2,258
-
5.4%
3.0
$2,227
-
YTD
9,932
5.0%
(0.6)
$2,229
$2.53
4.0%
1.6
$2,197
$2.50
2017
11,027
5.7%
0.5
$2,142
$2.43
2.4%
0.6
$2,102
$2.39
2016
9,708
5.2%
(0.3)
$2,092
$2.38
1.8%
(2.9)
$2,057
$2.34
2015
9,844
5.4%
0.8
$2,055
$2.33
4.7%
1.4
$2,036
$2.31
2014
7,951
4.6%
(0.6)
$1,964
$2.23
3.3%
0.1
$1,950
$2.21
2013
8,615
5.2%
0.4
$1,902
$2.16
3.2%
0.9
$1,891
$2.15
2012
7,768
4.8%
0.1
$1,844
$2.09
2.3%
0.5
$1,835
$2.08
2011
7,569
4.7%
0.1
$1,803
$2.05
1.7%
(0.5)
$1,792
$2.03
2010
7,406
4.6%
(0.6)
$1,772
$2.01
2.3%
6.3
$1,761
$2.00
2009
8,375
5.2%
(0.2)
$1,732
$1.97
-4.0%
(5.9)
$1,720
$1.95
2008
8,437
5.4%
(0.1)
$1,805
$2.05
1.8%
(1.1)
$1,793
$2.03
2007
8,409
5.5%
0.2
$1,773
$2.01
2.9%
1.4
$1,760
$2.00
2006
7,901
5.3%
0
$1,723
$1.95
1.5%
-
$1,709
$1.94
4 & 5 STAR VACANCY & RENT Vacancy
Asking Rent
Effective Rent
Year
Units
Percent
Ppts Chg
Per Unit
Per SF
% Growth
Ppts Chg
Per Unit
Per SF
2022
8,744
8.9%
(0.2)
$2,870
-
1.1%
0.1
$2,813
-
2021
8,415
9.1%
(0.4)
$2,837
-
1.1%
0.5
$2,781
-
2020
8,232
9.5%
(0.8)
$2,808
-
0.6%
(0.6)
$2,751
-
2019
8,279
10.3%
1.0
$2,791
-
1.2%
(5.0)
$2,735
-
2018
6,761
9.3%
(0.4)
$2,757
-
6.2%
4.2
$2,701
-
YTD
5,994
8.7%
(1.0)
$2,724
$2.87
5.0%
3.0
$2,669
$2.81
2017
6,428
9.7%
0.9
$2,596
$2.74
2.0%
1.7
$2,529
$2.67
2016
5,235
8.8%
(1.3)
$2,545
$2.68
0.3%
(3.7)
$2,489
$2.62
2015
5,400
10.1%
3.5
$2,536
$2.67
4.1%
1.2
$2,500
$2.64
2014
3,028
6.6%
(1.5)
$2,437
$2.57
2.9%
(0.3)
$2,412
$2.54
2013
3,267
8.1%
1.9
$2,369
$2.50
3.2%
1.0
$2,353
$2.48
2012
2,267
6.2%
0.8
$2,296
$2.42
2.2%
0.4
$2,284
$2.41
2011
1,867
5.4%
0.1
$2,245
$2.37
1.8%
(0.2)
$2,233
$2.35
2010
1,844
5.3%
(1.0)
$2,205
$2.32
2.0%
6.3
$2,191
$2.31
2009
2,158
6.4%
(0.3)
$2,161
$2.28
-4.3%
(6.2)
$2,144
$2.26
2008
2,072
6.7%
(1.7)
$2,259
$2.38
1.8%
(1.0)
$2,241
$2.36
2007
2,388
8.4%
0
$2,218
$2.34
2.8%
1.3
$2,199
$2.32
2006
1,971
8.4%
(0.8)
$2,157
$2.27
1.5%
-
$2,135
$2.25
6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.
Page 28
Appendix Boston Multi-Family 3 STAR VACANCY & RENT Vacancy
Asking Rent
Effective Rent
Year
Units
Percent
Ppts Chg
Per Unit
Per SF
% Growth
Ppts Chg
Per Unit
Per SF
2022
3,411
4.5%
(0.1)
$2,154
-
1.5%
0
$2,136
-
2021
3,453
4.6%
0.1
$2,122
-
1.4%
0.3
$2,106
-
2020
3,409
4.5%
0.2
$2,092
-
1.1%
(0.9)
$2,076
-
2019
3,256
4.3%
0.5
$2,070
-
2.0%
(3.2)
$2,053
-
2018
2,809
3.8%
(0.2)
$2,030
-
5.1%
2.1
$2,013
-
YTD
2,411
3.3%
(0.7)
$1,998
$2.32
3.5%
0.4
$1,980
$2.30
2017
2,920
4.1%
0.4
$1,930
$2.24
3.1%
0.1
$1,904
$2.21
2016
2,643
3.7%
0.1
$1,872
$2.17
3.0%
(2.4)
$1,851
$2.15
2015
2,557
3.6%
(0.4)
$1,818
$2.11
5.4%
1.4
$1,809
$2.10
2014
2,806
4.0%
(0.4)
$1,725
$2.00
4.0%
0.7
$1,719
$1.99
2013
3,055
4.4%
0
$1,658
$1.92
3.3%
0.6
$1,649
$1.91
2012
3,013
4.3%
(0.2)
$1,604
$1.86
2.7%
1.1
$1,599
$1.85
2011
3,133
4.5%
0.1
$1,561
$1.81
1.7%
(0.8)
$1,552
$1.80
2010
3,044
4.4%
(0.6)
$1,536
$1.78
2.5%
6.3
$1,527
$1.77
2009
3,461
5.0%
(0.1)
$1,498
$1.74
-3.8%
(5.7)
$1,489
$1.72
2008
3,503
5.1%
0.3
$1,557
$1.80
1.9%
(1.2)
$1,548
$1.79
2007
3,284
4.8%
(0.1)
$1,528
$1.77
3.1%
1.4
$1,519
$1.76
2006
3,332
4.9%
0.1
$1,482
$1.72
1.7%
-
$1,473
$1.71
1 & 2 STAR VACANCY & RENT Vacancy
Asking Rent
Effective Rent
Year
Units
Percent
Ppts Chg
Per Unit
Per SF
% Growth
Ppts Chg
Per Unit
Per SF
2022
2,202
4.2%
(0.1)
$1,718
-
1.4%
0
$1,710
-
2021
2,230
4.3%
0.2
$1,693
-
1.4%
0.4
$1,686
-
2020
2,138
4.1%
0.6
$1,670
-
1.0%
(0.7)
$1,663
-
2019
1,852
3.6%
0.7
$1,654
-
1.7%
(1.7)
$1,646
-
2018
1,596
2.8%
(0.1)
$1,626
-
3.5%
1.1
$1,619
-
YTD
1,527
2.7%
(0.3)
$1,602
$2.07
2.0%
(0.3)
$1,595
$2.06
2017
1,679
3.0%
(0.3)
$1,572
$2.03
2.3%
(1.9)
$1,560
$2.01
2016
1,831
3.2%
(0.1)
$1,536
$1.98
4.2%
(0.9)
$1,523
$1.97
2015
1,887
3.3%
(0.4)
$1,475
$1.90
5.0%
2.2
$1,469
$1.89
2014
2,118
3.7%
(0.3)
$1,404
$1.81
2.8%
0.3
$1,397
$1.80
2013
2,293
4.0%
(0.3)
$1,366
$1.76
2.5%
1.3
$1,360
$1.75
2012
2,488
4.4%
(0.1)
$1,332
$1.71
1.3%
(0.3)
$1,325
$1.70
2011
2,570
4.5%
0.1
$1,315
$1.69
1.6%
(1.2)
$1,308
$1.68
2010
2,518
4.4%
(0.4)
$1,295
$1.66
2.7%
6.3
$1,288
$1.66
2009
2,756
4.9%
(0.2)
$1,260
$1.62
-3.6%
(5.2)
$1,253
$1.61
2008
2,862
5.0%
0.2
$1,308
$1.68
1.6%
(1.1)
$1,300
$1.67
2007
2,737
4.8%
0.2
$1,287
$1.65
2.7%
1.3
$1,280
$1.64
2006
2,598
4.6%
(0.2)
$1,254
$1.61
1.4%
-
$1,247
$1.60
6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.
Page 29
Appendix Boston Multi-Family OVERALL SALES Completed Transactions (1)
Market Pricing Trends (2)
Year
Deals
Volume
Turnover
Avg Price
Avg Price/Unit
Avg Cap Rate
Price/Unit
Price Index
2022
-
-
-
-
-
-
$316,713
200
Cap Rate
5.4%
2021
-
-
-
-
-
-
$312,660
197
5.4%
2020
-
-
-
-
-
-
$310,852
196
5.4%
2019
-
-
-
-
-
-
$318,929
201
5.2%
2018
-
-
-
-
-
-
$328,163
207
5.1%
YTD
122
$1,031 M
2.4%
$8,588,440
$218,443
6.1%
$327,738
207
5.1%
2017
229
$3,117 M
4.7%
$15,058,875
$354,992
5.7%
$324,082
204
5.1%
2016
291
$2,732 M
5.8%
$9,899,538
$262,618
6.2%
$313,495
198
5.1%
2015
288
$3,162 M
6.9%
$11,251,044
$262,608
6.9%
$296,328
187
5.1%
2014
257
$1,323 M
3.9%
$5,376,809
$207,808
7.4%
$264,465
167
5.3%
2013
221
$1,223 M
5.4%
$5,938,651
$207,984
6.6%
$236,755
149
5.6%
2012
225
$1,292 M
8.6%
$7,023,067
$175,338
6.1%
$229,678
145
5.6%
2011
146
$1,061 M
4.2%
$8,287,597
$188,154
6.1%
$212,571
134
5.7%
2010
91
$634.0 M
2.1%
$8,025,683
$210,152
7.3%
$192,527
121
6.0%
2009
97
$375.9 M
1.7%
$4,528,549
$185,706
7.2%
$146,020
92
6.7%
2008
118
$430.6 M
2.1%
$4,062,721
$141,243
8.1%
$158,632
100
6.5%
2007
217
$2,296 M
8.4%
$12,149,204
$217,567
7.4%
$202,326
128
5.8%
(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
4 & 5 STAR SALES Completed Transactions (1)
Market Pricing Trends (2)
Year
Deals
Volume
Turnover
Avg Price
Avg Price/Unit
Avg Cap Rate
Price/Unit
Price Index
Cap Rate
2022
-
-
-
-
-
-
$400,460
193
4.7%
2021
-
-
-
-
-
-
$395,897
190
4.7%
2020
-
-
-
-
-
-
$394,296
190
4.7%
2019
-
-
-
-
-
-
$406,389
196
4.6%
2018
-
-
-
-
-
-
$420,268
202
4.4%
YTD
8
$554.8 M
2.6%
$69,348,750
$306,683
4.8%
$421,258
203
4.4%
2017
23
$2,010 M
6.5%
$87,385,366
$467,954
4.6%
$417,276
201
4.4%
2016
23
$1,245 M
6.8%
$59,269,762
$332,709
5.0%
$409,888
197
4.3%
2015
28
$1,825 M
10.2%
$67,579,612
$356,655
4.8%
$389,068
187
4.4%
2014
11
$540.6 M
4.6%
$54,065,000
$292,243
5.0%
$345,532
166
4.6%
2013
22
$578.9 M
12.8%
$48,242,305
$253,130
4.9%
$312,218
150
4.8%
2012
33
$577.1 M
23.5%
$48,090,883
$226,577
4.3%
$303,992
146
4.8%
2011
10
$561.9 M
8.0%
$70,240,625
$288,463
5.1%
$278,945
134
4.9%
2010
7
$380.6 M
4.5%
$54,367,857
$243,179
5.5%
$253,317
122
5.1%
2009
2
$27.2 M
0.6%
$27,250,000
$159,357
-
$192,409
93
5.7%
2008
5
$174.2 M
3.2%
$34,836,154
$174,880
-
$207,856
100
5.6%
2007
14
$999.4 M
13.1%
$76,878,846
$285,305
5.2%
$265,726
128
5.0%
(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.
Page 30
Appendix Boston Multi-Family 3 STAR SALES Completed Transactions (1)
Market Pricing Trends (2)
Year
Deals
Volume
Turnover
Avg Price
Avg Price/Unit
Avg Cap Rate
Price/Unit
Price Index
Cap Rate
2022
-
-
-
-
-
-
$282,075
204
5.5%
2021
-
-
-
-
-
-
$278,117
202
5.5%
2020
-
-
-
-
-
-
$276,071
200
5.5%
2019
-
-
-
-
-
-
$282,289
205
5.4%
2018
-
-
-
-
-
-
$289,206
210
5.2%
YTD
39
$323.7 M
2.9%
$8,299,249
$153,471
5.5%
$289,351
210
5.2%
2017
63
$775.1 M
4.7%
$13,840,350
$247,623
5.7%
$286,438
208
5.2%
2016
72
$1,103 M
6.7%
$16,223,474
$234,374
5.6%
$273,673
198
5.2%
2015
55
$1,038 M
7.1%
$19,575,541
$206,017
6.2%
$258,308
187
5.2%
2014
70
$476.7 M
3.2%
$7,222,495
$216,872
6.3%
$232,470
168
5.4%
2013
62
$444.3 M
3.5%
$7,404,192
$203,412
7.0%
$205,302
149
5.8%
2012
41
$331.8 M
3.5%
$10,053,452
$178,464
5.8%
$199,000
144
5.7%
2011
32
$329.4 M
3.5%
$11,763,237
$140,337
5.7%
$185,740
135
5.8%
2010
11
$153.2 M
1.1%
$13,930,577
$209,054
6.7%
$168,073
122
6.1%
2009
13
$243.8 M
2.1%
$24,379,963
$231,529
7.8%
$127,391
92
6.8%
2008
22
$114.0 M
1.4%
$5,701,646
$126,003
6.5%
$137,990
100
6.7%
2007
49
$1,047 M
10.6%
$24,354,106
$195,051
6.2%
$176,214
128
5.9%
(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
1 & 2 STAR SALES Completed Transactions (1)
Market Pricing Trends (2)
Year
Deals
Volume
Turnover
Avg Price
Avg Price/Unit
Avg Cap Rate
Price/Unit
Price Index
Cap Rate
2022
-
-
-
-
-
-
$246,038
206
6.1%
2021
-
-
-
-
-
-
$242,570
203
6.1%
2020
-
-
-
-
-
-
$240,788
202
6.1%
2019
-
-
-
-
-
-
$245,739
206
6.0%
2018
-
-
-
-
-
-
$251,576
211
5.8%
YTD
75
$152.2 M
1.4%
$2,084,275
$190,190
6.5%
$251,995
211
5.8%
2017
143
$332.3 M
2.7%
$2,595,814
$245,033
6.1%
$247,820
208
5.8%
2016
196
$384.4 M
3.6%
$2,055,675
$196,529
6.9%
$235,752
198
5.9%
2015
205
$299.4 M
3.4%
$1,489,503
$158,659
7.7%
$221,156
185
5.9%
2014
176
$305.4 M
4.2%
$1,796,238
$131,791
8.0%
$197,160
165
6.2%
2013
137
$200.2 M
2.6%
$1,494,052
$141,887
7.5%
$176,251
148
6.5%
2012
151
$383.4 M
5.5%
$2,758,200
$129,349
7.3%
$169,714
142
6.5%
2011
104
$169.5 M
2.6%
$1,842,574
$126,222
7.1%
$158,282
133
6.7%
2010
73
$100.2 M
1.8%
$1,642,911
$139,385
8.0%
$142,649
120
7.0%
2009
82
$104.8 M
1.8%
$1,455,832
$131,025
7.0%
$107,919
90
7.8%
2008
91
$142.4 M
2.2%
$1,758,454
$124,072
8.6%
$119,328
100
7.6%
2007
154
$249.5 M
3.4%
$1,876,301
$148,364
8.3%
$151,090
127
6.8%
(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.
Page 31
Appendix Boston Multi-Family DELIVERIES & UNDER CONSTRUCTION Inventory
Deliveries
Net Deliveries
Under Construction
Year
Bldgs
Units
Vacancy
Bldgs
Units
Bldgs
Units
Bldgs
Units
2022
-
231,363
6.2%
-
6,018
-
5,960
-
-
2021
-
225,403
6.3%
-
5,940
-
5,884
-
-
2020
-
219,519
6.3%
-
7,250
-
7,189
-
-
2019
-
212,330
6.3%
-
9,495
-
9,447
-
-
2018
-
202,883
5.5%
-
8,147
-
8,087
-
-
YTD
4,753
197,251
5.0%
20
2,719
18
2,455
115
18,438
2017
4,735
194,798
5.7%
51
7,309
48
7,210
116
16,488
2016
4,687
187,599
5.2%
42
6,789
41
6,784
88
13,352
2015
4,646
180,817
5.4%
49
7,997
49
7,997
75
12,250
2014
4,597
172,821
4.6%
40
5,684
37
5,579
68
11,429
2013
4,560
167,242
5.2%
32
4,258
31
4,186
56
9,884
2012
4,529
163,125
4.8%
15
1,962
14
1,951
43
6,580
2011
4,515
161,112
4.7%
5
205
3
60
26
4,162
2010
4,512
161,052
4.6%
10
813
8
734
8
1,013
2009
4,504
160,318
5.2%
22
3,917
19
3,901
12
826
2008
4,485
156,417
5.4%
16
2,660
16
2,660
25
4,381
2007
4,469
153,762
5.5%
29
5,224
28
5,219
25
5,366
2006
4,441
148,543
5.3%
24
5,662
24
5,662
35
6,900
6/13/2018 Copyrighted report licensed to United Multi Family Corporation - 58098.
Page 32