New York and San Francisco, both known for their insanely high rent prices saw negative rent growth from the second to third quarter. Boston however, saw a 0.9 percent increase to an average apartment rental rate of $2,072, according to the third-quarter apartment sector survey by New York-based real estate research firm Reis Inc.
According to the Reis report, Boston’s $2,072 average rental rate is the third-highest in the U.S. The city beat San Jose, California, which had an average rent of $2,053 in the third quarter. New York’s average rent declined 0.1 percent in the quarter to $3,441, while San Francisco’s declined 0.8 percent to $2,481.
Boston has seen 4.3 percent growth in effective rent in the past year, the Reis report said, with an apartment vacancy rate of 5 percent. National apartment vacancy is 4.4 percent. The rate is expected to increase at a steady rate in the coming months, mostly due to vacancies in newly completed properties that aren’t securing tenants at as rapid a rate as they had in the past year. However, increases in job growth suggest that demand should remain strong enough to prevent vacancy from rising significantly.