Charlestown Rental Market Absorbs 75% Of Vacant Apartment Inventory In Just 6 Weeks
The rental market in Charlestown MA has historically been one of the more stable in Greater Boston. Whereas most neighborhoods in Beantown see high turnover combined with high demand due to the large the student population, Charlestown is one of the few neighborhoods where high demand is coupled with low turnover. For this reason, vacancy rates in Charlestown have historically been among the lowest in Boston. Until COVID came to town.
Apartment Supply Numbers In Charlestown Are On A Wild Ride
In September of 2020, the vacancy rate for Charlestown apartments hit 2.82%, nearly double what it was the year before. While that paled in comparison to the City of Boston’s vacancy rate of 9.13% during the same month, it still shocked the Charlestown apartment rental market, which hadn’t seen a vacancy rate over 2% in many years. And it didn’t stop there.
Two months later in November of 2020, Charlestown’s vacancy rate surged even higher to over 5%. Since then, the market has been slow to absorb the excess apartment inventory, until recently. Announcements made by local universities regarding the relegation of remote learning this fall has revived demand in Charlestown and all over Boston. There has been a gush of rental activity in the past 6 weeks and as a result, the vacancy rate in Charlestown dropped almost 75% during the span, from 4.09% in early April to 1.04% where it stands today.
Average Rent Prices for Charlestown Apartments
The current average rent price in Charlestown MA is $2,786. That is the 9th most expensive average rent in Boston out of 25 neighborhoods. As a result of the added inventory, landlords have been dropping rent prices in Charlestown to try to spur demand. Average rent is down -5.35% YOY in Charlestown, the 11th largest drop in rent out of all neighborhoods in Boston.
The rental markets near Downtown are starting to come alive again, indicating that these drops in rent may only be temporary. Demand is expected to surge all throughout Boston this summer as students look to secure housing for the fall semester. With the vacancy rate at 1.04% currently, that means it will be slim pickings in Charlestown over the summer.
Still, demand is expected to pick up in Charlestown over the summer. A swift vaccine rollout in Massachusetts is reviving the business professional population, a key part of Charlestown’s rental market. Interest rates are expected to rise with inflation this year, which may push potential buyers into renting, especially considering the exorbitant median home price in Greater Boston.
In the short run, it still appears to be a rare renter’s market in Charlestown. At the moment, roughly 35% of available apartments in Charlestown are advertised as partial or no-fee for renters, so locals can still find some good deals in Charlestown compared to recent years. This likely won’t last as the vacant units are swiftly getting filled in Charlestown.