There is a flurry of apartment complex construction in Boston right now. A fair question to ask is, is there enough demand for the hundreds of new units coming on the market during the next sixteen months to two years.
I think the answer is yes, although it will take several years for the new supply to be absorbed – as the downtown population rises and the economy recovers, each of the projects should do well. (They could help themselves a bit, however, by maybe offering studio apartments for $2,700 … and up.)
Several developers are now taking steps to reduce the increased inventory by either adding condominium units to their projects or switching some of their rental units to for-sale condos.
According to Tom Grillo at the Boston Business Journal, the Simon Properties tower proposed for Copley Place in Back Bay will now have 109 condos and 433 apartments in its 52-story skyscraper. The previous plan called for a 47-story tower that would house four floors of retail and 318 condos above.
In addition, projects at the TD Garden, South Station, and Pier 4 could also go condo, and the residential portion of the multi-use building at Lovejoy Wharf will also be condos. (The South Station project was proposed years ago; it’s the least likely of these four to get underway anytime soon.)
Meanwhile, the developer of the Ink Block in the South End has switched one of its eight buildings from apartments to condos under the “Sepia at Ink Block” brand.
Author: John Keith
John A Keith is a licensed real estate broker in Boston, Massachusetts. He helps buyers and sellers of condos and single-family homes in all of Boston’s neighborhoods.
He is also a writer whose work has appeared in South End News, Boston Courant, Back Bay Patch, and Boston Herald.