Boston Suburbs Experience Rental Growth as City Housing Affordability Declines

News Summary

A recent report reveals that Boston’s suburbs are experiencing a surge in rental growth, attracting 25,500 new renters from 2018 to 2023. This trend highlights the unaffordability of housing in Boston, driving residents to seek more affordable options in suburban areas. The shift is evident in cities such as Brookline and Watertown, which have seen significant increases in rental households. High home prices and rising rent are pushing many to reconsider housing choices, as suburban areas now offer more appealing rental options amidst the city’s housing crisis.

Boston Suburbs Experience Rental Growth as City Housing Affordability Declines

A report from Point2Homes highlights a significant trend in Boston, revealing that suburban areas are attracting renters at a faster pace than the city’s core. The analysis shows that between 2018 and 2023, rental households in the suburbs near Boston increased by 7%, which translates to approximately 25,500 new renters. In contrast, urban households in Boston grew at a much slower rate of 5.2%, adding about 12,000 renters during the same period.

This shift in rental growth underlines the increasing unaffordability of living in Boston’s city center, causing many residents to reconsider their housing options. The data from the U.S. Census Bureau indicates that areas like Brookline and Watertown are transitioning from majority homeowners to majority renters, with the percentage of renters currently at 54% in Brookline and 51% in Watertown. The cities of Chelsea and Lawrence report the highest percentage of renters in Massachusetts, with both areas hovering around 70%.

Key Increases in Rental Households

Notable increases in rental households were observed in several suburban locations, including Quincy with 3,500 new renters, Lawrence with 3,317, Brookline with 2,521, and Medford adding 1,675 renters. This trend reflects a broader movement seen across other major U.S. metro areas such as Dallas, Minneapolis, Tampa, and Baltimore, where suburban rentals are also outpacing urban growth.

Factors Contributing to Suburban Growth

The increase in suburban renters is largely attributed to factors such as the rise of remote work and escalating homeownership costs. As the median sale price for a single-family home in the greater Boston area reached a record $990,000 in April, marking a 4.2% increase from the previous year, many potential homebuyers feel out of reach of the housing market. Additionally, inventory saw a nearly 25% uptick, yet demand remains high, especially for quality properties that are selling above asking prices.

The rental market in Boston presents similar pressures, with the average rent for a one-bedroom apartment reported at $2,358 in September, and even higher at $2,735 in Cambridge. These figures highlight a housing affordability crisis that has forced many potential first-time homebuyers to renew existing leases rather than purchase homes.

Implications of the Shift

The trend illustrated by the Point2Homes report represents a fundamental change in living and housing preferences across the country. With ongoing demand in Boston’s job markets, particularly in sectors like education and healthcare, the need for more affordable housing solutions becomes evident. As the population continues to gravitate towards suburban areas in search of affordability, urban centers must adapt to these changes in housing dynamics.

This ongoing trend illustrates the challenges faced by many cities as they navigate the balance between providing affordable housing options and managing the growth of suburban communities.

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Additional Resources

• Axios: Boston Suburban Rentals Increasing
• Boston.com: Report Says Boston’s Suburbs are Turning into Majority Renter Communities
• Boston Real Estate Times: Boston Suburbs Join Growing National Trend as Renters Outnumber Homeowners
• NBC Boston: Boston Massachusetts Real Estate Market Update
• Wikipedia: Rental Market