Boston, MA Multifamily Market Report | Matthews | Q4 2025

Market Overview

Boston closed year-end 2025 with vacancy averaging 5.7% and rent growth cooling to 0.4%, as elevated deliveries continued to work through the pipeline. Net absorption reached roughly 5,500 units for the year, demonstrating that demand remains intact. The pressure came from the supply side: approximately 8,500 units were delivered annually, keeping upward vacancy drift in place despite strong household formation and a deep institutional employment base. Construction starts declined 30% year-over-year, pointing toward meaningful pipeline relief in 2026. Investment activity improved in the back half of the year, with Boston multifamily holding its standing as the region's preferred asset class for institutional capital.

About Matthews

Matthews Real Estate Investment Services is a national commercial real estate brokerage and advisory firm serving multifamily owners, investors, and developers across major U.S. markets. Their Boston, MA Year-End 2025 multifamily market report tracks vacancy, rent growth, absorption, and sales volume to help clients assess market conditions and refine investment timing. To read the full report, click here.