Michael DiMella, Managing Partner of Charlesgate Realty, recently spoke with the Boston Herald to discuss drops in Boston rents. This is the first decrease in 6 years that we have seen in the rental market. Although there have been many high-end listings come to the market over the past year like Millennium Tower, there was a decrease of almost 2% in last quarter of 2016.
Mike was quoted in the article describing his thoughts on why we are seeing this decrease now.
“The supply is finally starting to keep up with demand,” said Michael DiMella, managing partner of Charlesgate Realty Group. “We were way behind in new construction; it’s finally getting to the point where it’s catching up to the demand.”
Is it just the higher-end market? Mike also responded to thoughts about how this high end market impacts all the way down.
“As higher-end rents start to come down, we see that impact the mid-tier segment,” he said. “I don’t expect prices to decline substantially, but hopefully we can build enough inventory to keep pace with demand and keep prices from appreciating dramatically.”