Boston, MA Multifamily Market Report March 2026

Boston’s multifamily market remains resilient despite a robust wave of new construction that has pushed conditions off recent highs. Over the past year, deliveries outpaced absorption, lifting vacancy to 7.4% in early 2026, though leasing has remained active enough to support overall fundamentals. In the last 12 months, the market absorbed 6,733 units while delivering 12,410 units, with particularly strong demand in Everett/Malden/Medford/Melrose, East Boston/Chelsea, Route 1 North, and 495 South. Leasing has also improved in South Boston/Seaport, signaling renewed renter demand in select urban areas.

Boston continues to outperform the broader U.S. multifamily market, with vacancy remaining about 200 basis points below the national average. Rent growth has moderated, with asking rents flat year over year, as the market absorbs recent supply additions. Even so, Boston’s strong renter base, high barriers to entry, and steady investor demand should support stability as construction slows, with vacancy expected to peak near 7.5% before easing.

Key Findings

Boston’s multifamily investment market remains active despite elevated interest rates and broader capital market volatility. Over the past year, 16,594 units traded for a total of $4.6 billion, reflecting resilient investor demand across the market.
As of March 2026, vacancy reached 7.4% as recent deliveries have outpaced absorption over the last year. However, this remains 200 basis points below the national average.
Market rents average roughly $2,900 per unit, among the highest in the nation, though year-over-year rent growth has flattened as new supply enters the market.

Boston Multifamily Supply & Demand Dynamics

Source: CoStar Group, Inc.

Greater Boston MSA Demographics

Source: CoStar Group, Inc.

Unemployment Rate: 4.6%
Current Population: 5,067,470
Households: 1,995,759
Median Household Income: $121,697

Greater Boston MSA Population, Labor, & Income Growth

Source: CoStar Group, Inc.

Greater Boston MSA Construction

The development pipeline remains active, though construction levels are beginning to trend lower. After delivering roughly 8,100 units in 2024 and more than 9,300 units in 2025, the market is expected to add around 7,700 units by year-end 2026, keeping supply growth generally in line with recent trends. Boston currently has about 10,000 units under construction, representing roughly 3.4% of existing inventory, with a large share concentrated in northern submarkets near downtown, particularly Somerville/Charlestown and Everett/Malden/Medford/Melrose. The composition of new development is also shifting, with nearly 40% of units underway classified as 3-star properties, signaling a gradual move away from the predominantly luxury-focused construction that characterized earlier cycles.

Unit Construction Starts

Source: CoStar Group, Inc.

Units Under Construction

Source: CoStar Group, Inc.

Sales

Boston’s multifamily investment market remains active despite elevated interest rates and broader capital market volatility. Over the past year, 16,594 units traded for a total of $4.6 billion, reflecting resilient investor demand across the market. Pricing averages roughly $450,000 per unit, nearly double the national average, while cap rates have held near 5.1%. Private capital remains especially active, though institutional and public buyers continue to account for a significant share of large transactions. As investors remain selective across other asset classes, multifamily continues to stand out as one of Boston’s most favored investment sectors.