Watertown Rental Market Forecast 2023 And Beyond
Last year’s unprecedented surge in apartment demand was the catalyst that resulted in the surge in rental prices in Watertown. As rent prices climbed in many of Boston’s suburbs last fall, Watertown had offered renters a more affordable option. This likely led to RTAR and RTVR plummeting in fall 2022, which in turn caused rent prices to climb at an even higher margin in 2023.
The affordability that attracted so many renters over the last year has all but dissipated, and now Watertown is just as expensive as some of Boston’s most sought after suburbs. We expect demand to cool in Watertown over the next year, but rent prices aren’t likely to drop over that time period. Demand for rentals is still extremely high in Boston, and average rent prices in Watertown remain a few hundred dollars less per month than the city of Boston.
Despite the high marginal increase in RTAR and RTVR in Watertown, supply figures are still low compared to earlier years, which indicates the market is still healthy and viable for future growth should economic conditions not worsen. Expect prices to flatten or slow in growth the next year. Corporate layoffs could occur in the event that the economy deteriorates, which would increase unemployment and reduce demand. Rent costs would most likely decrease as a result, but not for the reasons that anyone is hoping for. It is getting quite challenging to predict some apartment leasing markets due to the conflicting economic messages we are seeing out in the broader economy. We will continue to monitor these trends as they develop.
If you are a property owner or landlord looking for apartment leasing or multifamily sales advice; please feel free to reach out to me directly.