Everyone knows rental demand is high. It’s high across the country, from San Francisco to Chicago to Boston rents are way up. In Boston, the demand is particularly high and for those looking to move in now, pricing is beyond all reasonable expectations. This week we placed a few quick calls and took a look at our listing sheets and realized that the current average price to be in a high rise Studio in Boston and parts of Cambridge is $2900/month. Keep in mind this is a studio, which means no fully private bedroom. Now, most landlords I know generally try and stick the 1/3 rule before requiring a co-signer. This means that your monthly rent should not exceed 1/3 of your monthly income. For those that need help with the math, that means in order to rent one of these studios you should be making $104,000 a year. Now you’re asking yourself who’s going to pay that? The short answer, you are!
Yesterday, as I was looking at a new rental building in downtown, another agent asked me what I thought of the units. I responded, I thought they were over priced. The agent replied, “but they are 70% rented and it’s only been open 3 months.” The units started at $2700 for their smallest unit. This means that despite all the logic and rational thinking, people are continuing to spend upwards of $2700 on something without a true bedroom.
People complain about the high rent in the city, but as long as the demand remains buildings are going to continue to raise the rent as high as they can.