Alcott/Photo courtesy of Equity Residential
Two publicly-traded apartment landlords reported big rent increases in their New England portfolios amid a recovery of the multifamily market.
Equity Residential said average rents hit $3,131 per month in its Greater Boston portfolio, a 7 percent increase on a same-store basis over a 12-month period. The company’s 27 properties totaling 7,170 units were 97-percent leased at the end of the first quarter.
And AvalonBay Communities said average rents rose 7.4 percent to $2,873 over the same period for its nearly 10,000-unit New England portfolio.
Equity Residential Chief Operating Officer Michael Manelis said the Boston region has returned to normal seasonal market conditions following the disruption caused by COVID-19.
“The market is benefiting from the big college campuses being opened and the return of international students and workers and the continued strong demand drivers from lab and life sciences, financial firms, health care and education,” Manelis said in a conference call with analysts this week to discuss the company’s first-quarter financials. “Competition from the new supply will be modest and market performance should be strong.”
The Chicago-based REIT reported a 14.9 percent increase in earnings per share during the first quarter, and funds from operations of 77 cents per share, up from 67 cents in the first quarter of 2021.
The firm’s newest ground-up development in Boston, the $410 million Alcott tower in West End which opened in fall 2021, is 69 percent leased. The property lists studios starting at $3,580.
Arlington, Virginia-based AvalonBay Communities reported first-quarter earnings per share rose 83 percent from the prior year, and funds from operations of $2.26 per share, up from $1.95 for the prior-year period.
AvalonBay completed the $120-million Avalon Woburn complex during the first quarter. The 350-unit complex located next to the Woburn Village retail center is now 87 percent leased at average rents of $2,825.
AvalonBay projects average rents of $3,316 at its 180-unit Avalon Brighton project and $2,430 at the 170-unit Avalon North Andover property, both of which are scheduled for completion in the first half of 2023.
Separately, Apartmentlist.com reported today that Greater Boston apartment rents have risen for four consecutive months, with median rents now standing at $2,045 for a one-bedroom unit and $2,179 for a two-bedroom apartment.
Medford had the fastest-rising rents in the metro area. Rents increased nearly 22 percent in the past year and now average $1,736 for a one-bedroom unit, Apartmentlist said. Statewide, rents have risen nearly 16 percent.
Editor’s note: This report has been updated with additional data from Apartmentlist.com.
