Home News It’s not just home-buyers. Renters are now offering over-asking in Boston, too.

It’s not just home-buyers. Renters are now offering over-asking in Boston, too.

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Jim Morrison — Boston.com Correspondent

August 8, 2022 at 1:32 PM

Rental inventory has dwindled, and some Greater Boston apartment seekers are paying excessive rents to secure a home before September 1, when the majority of Boston-area apartments are handed over. is offering

boston pad CEO Demetrios Salpoglou said the problem basically comes down to an imbalance between supply and demand, but there’s more to it than that.

“Our economy is stronger and more diversified than ever before,” he said. “During COVID, we experienced the largest immigration Boston has ever seen. Many owners had vacant apartments and they took the opportunity to renovate their units. Now they’re very nice, but those tenants don’t want to move out, so there’s less vacancies. No. It creates competition and leads to bidding wars.”

Amy Mueller, Vice President of Marketing and Communications Apartment advisorReal estate rental platform .

“According to our data, the median rent for available two-bedroom apartments in Boston is now about 10% higher than it was at the same time last year,” she said. “We saw a 14% year-over-year increase in one-bedroom apartments. 2-bedroom median rents are up over 30% year-over-year.”

Her advice to renters?

“Get ready,” Muller said. “In this fast-changing market, you need to button up and have rental application materials, including proof of employment, pay stubs, references from past landlords, etc. In a competitive application landscape, landlords still The tendency to accept may be the difference between strong applicants and applicants who are ineligible to bid above the asking price.”

Apartment Advisor Posts Latest Massachusetts Rental Data here monthly.

Rental data, like real estate sales data, is not publicly available and therefore difficult to track. According to Salpoglou, the number of apartments available in Boston is about half what it was last year. Apartment Advisor data shows he’s down 40% in inventory since this time last year.

Ramacchia Real Estate Broker/owner Anthony Ramakia said rental bid wars aren’t nearly as common as the bidding frenzy seen in the home sales market over the past few years, but renters have outpaced their monthly rent offer by as much as $300. I have heard that they are offering

“There is no doubt that higher interest rates lead to higher rents,” he said. “How sustainable? I think it depends on the economy. But rents are higher than ever this season.”

He said most renters will need a place to live when their lease expires, so he can’t wait to see what happens when rental demand weakens after September 1. First-time renters who are still living with their parents may be able to wait, but by then there usually isn’t much inventory to choose from.

Mike McGrory, vice president of property acquisition and development at Lamacchia Realty, said many of the owners his firm represents are reluctant to raise rents during the worst of the COVID pandemic. It’s coming to replace them, but they’re very different now.

“Now that the worst of COVID-19 is in our rearview mirrors, we are systematically raising rents every time an apartment is renewed,” he said. “And tenants are generally happy with that because they realize that if they come back to the rental market, they’re probably going to be paying more for the same apartments — if they’re willing to do that. if you can find it.”

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