Property owners and investors with rental units need to understand that we are seeing a huge decline in renters this year. If they do not reduce prices and pay broker fees apartments will be sitting vacant for the next 3- 6 months. I hope this artice from the Boston Hearald will wake them up to reality. Please read this artice to see the latest numbers on rentals in Boston Back Bay area. “Herb Rikeman”
Experts say Boston is facing its worst apartment glut in years just when its key May-to-August apartment-hunting season should be peaking. Rental units are historically hard to find in August as incoming students move in, while recent graduates land their first post-college apartments.Put things are different this year.
Boston had 1,044 rentals listed on the MLS Property Information Network as of yesterday - nearly twice the 535 listed at the same time last year.
Vacancies are particularly soaring in areas popular with college students and young professionals. For instance, MLS currently lists 142 Back Bay rentals, vs. just 49 units available a year earlier.
Experts add that the glut is even worse than those figures indicate, as not all landlords list their apartments on MLS.
“The recession is finally starting to impact Boston landlords,” said Beacon Hill real estate broker John Ford.
Ford and others partly attribute the glut to increased dorm space at Hub colleges, coupled with a slew of condos put up for rent because the units are unsellable in the current market. But mostly, experts blame today’s crummy economy.
“Our largest rental group - 18- to 24-year-olds - all appear to be living with the same roommates this year: mom and dad,” Ford said. “Either young people can’t find a (post-college) job that lets them move out of the house, or they’re still in school but living at home because their parents can’t afford apartments or dorm rooms.”
Broker Matt Bless had 511 Allston, Brighton and Brookline listings available for Sept. 1 occupancy this year, up from 346 a year ago.
“It’s taken awhile, but I think the effects of job losses and fewer new hires has begun to filter down to the level of rental applications,” he said.
Bless said landlords haven’t had to slash prices so far, although some have trimmed rents by $100 or so per month.
But West Roxbury broker Kevin Monahan said there’s a big disconnect between what landlords want to charge and tenants want to pay.
Monahan has three clients looking to rent places for $800 to $1,000 a month, but can’t find them anything for less than $1,200.
“Homeowners see the news every day that the real estate market has crashed,” Monahan said. “Landlords haven’t seemed to grasp that fact yet.”
Boston Hearald Reporting
