BOSTON — Marcus & Millichap (NYSE: MMI), a commercial real estate brokerage firm specializing in investment sales, financing, research, and advisory services, has published its 2026 Boston Multifamily Investment Forecast Report, pointing to continued strength in the region’s apartment market despite slower rent growth.
According to the report, Boston’s multifamily fundamentals remain resilient, supported by steady job growth, limited new housing supply, and sustained demand driven by affordability challenges.
“Despite a slower pace of rent growth, Boston’s fundamentals remain strong, with housing demand supported by affordability constraints and historically limited new supply,” said Thomas Shihadeh, Managing Director and Market Leader for New England at Marcus & Millichap.
Job Growth and Limited Supply
The report projects that the Boston metro area will add 6,000 jobs in 2026, marking the region’s largest annual employment gain since 2023. At the same time, new apartment deliveries are expected to total 5,000 units, roughly two-thirds of the metro’s 10-year average, resulting in the slowest inventory growth rate since 2013.
This imbalance between job growth and new housing supply is expected to help keep market conditions tight across both urban and suburban submarkets.
Vacancy and Rent Trends
Boston’s vacancy rate is forecast to rise modestly to 4.2% in 2026 but remain 20 basis points below the metro’s 20-year average, according to the report. Marcus & Millichap noted that both core and suburban areas are expected to maintain relatively tight occupancy levels.
Average effective rent in the metro is projected to reach $3,170 per month, placing Boston among the highest-priced multifamily markets in the country.
Investor Focus on Core and Transit-Oriented Markets
Buyer interest is expected to remain concentrated in core urban neighborhoods and along commuter rail corridors, where demand fundamentals remain strong. The report highlights Lynn, Salem, and Beverly as submarkets likely to see increased investor activity due to low vacancy rates and comparatively competitive pricing.
“Commuter rail submarkets like Lynn and Salem continue to draw attention, fueled by infrastructure access and competitive pricing,” Shihadeh said. “Policy changes like the MBTA Communities Act are also opening up new development channels in select first-ring suburbs.”
Overall, the forecast suggests that Boston’s multifamily market will continue to appeal to investors seeking stability in a supply-constrained environment. While rent growth may moderate, strong employment fundamentals and limited new construction are expected to sustain long-term demand and investment interest throughout 2026.
