Boston— Suburban markets are taking center stage in Greater Boston’s multifamily housing landscape, according to the newly released 2Q 2025 Boston Multifamily Market Report by Marcus & Millichap, a national commercial real estate brokerage firm.
The report underscores a growing strategic shift away from Boston’s urban core toward more affordable, high-demand suburban areas such as East Middlesex, South Essex, and Marlborough–Framingham, as renters and investors alike look for better value outside the city center.
“Suburban Boston is emerging as a prime opportunity for multifamily investors, driven by strong renter demand and comparatively lower costs that offer compelling long-term upside,” said Thomas Shihadeh, Vice President and Regional Manager at Marcus & Millichap.
Key Highlights from the Report:
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Construction Remains Strong: Over the past 12 months, 6,761 new apartment units have been completed across the Boston metro area. A growing share of this development is occurring in outer-ring submarkets, reflecting a pivot to more cost-effective land and growing suburban populations.
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Vacancy Rates Fall: The metro’s vacancy rate dropped by 50 basis points year-over-year to 4.3%, the lowest in two years. The most significant declines were seen in Class B properties, particularly in Lowell, Marlborough–Framingham, and Southwest Boston, with each posting drops of more than 100 basis points.
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Rent Growth Continues: Effective rents rose 2.6% over the past 12 months, reaching an average of $3,002 per month as of early April. Rents are projected to hit $3,080 by year-end, keeping Boston in third place nationally for rent prices—behind only San Jose and New York.
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Sales Activity Surges: Multifamily sales jumped 33% year-over-year, with out-of-state acquisitions nearly doubling. The region’s strong economic base—anchored by world-renowned universities, healthcare institutions, and innovation hubs—continues to attract institutional investors.
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Suburban Supply and Demand: Submarkets like East Middlesex and South Essex delivered approximately 800 units in 2024, with over 2,000 units expected in 2025. Lowell, after a three-year pause in development, is preparing to add roughly 400 new units.
“We’re seeing a strategic shift in development momentum away from the urban core to more affordable suburban markets, and the demand is clearly following,” added Shihadeh.
Outlook
The Marcus & Millichap report suggests continued momentum in suburban investment as housing affordability and land constraints in central Boston drive both renters and developers outward. For investors, these emerging submarkets offer a rare mix of growth potential, tenant demand, and expanding infrastructure—all with fewer barriers to entry than core urban neighborhoods.
