ONE OF THE MOST DRAMATIC, THE CHANGES IN THE MARKET FOR RENTALS.
AS TED REINSTEIN TELLS US, RIGHT NOW RENTERS HAVE THE UPPER HAND.
TED: WE FIRST MET DIMITRI OFF, CEO OF REAL ESTATE WEBSI BOSTONPADS BACK IN JUNE, WHEN THE MARKET WAS STILL UNCERTAIN.
>> WE HAVE 165,000 UNIQUE LISTINGS, AND THAT COMPRIS 15,500-PLUS LANDLORDS IN OUR DATABASE.
TE THE RENTALS RUN ON A SEPTEMBER 1 LEASING SCHEDULE TO COINCIDE WITH COLLEGE STUDENTS RETURNING TO TOWN, BUT WHEN THE PANDEMIC HIT, EVERYTHING CHANGED.
>> THE OTHER DAY WE PICKED UP 108 VACANT UNITS.
IT IS UNHEARD OF TO HAVE 108 UNITS BECOMING VACANT.
THEY ARE LIKE, OK, MANIFESTED THIS, GET THESE DONE BY SEPTEMBER 1.
TE THREE MONTHS AFTER OUR INITIAL MEETING, SEPTEMBER 1 HAS COME AND GONE, AND GREATER BOSTON’S RENTAL LANDSCAPE STILL LOOKS GRIM.
WE LOOK BACK TO THE ANSWERS OF SEPTEMBER 16, 2019, WHEN THE ECONOMY WAS ON FIRE, WE ONLY HAD 1338 APARTMENT’S AVAILABLE TO RENT.
TED: COMPARE THAT WITH DATA TRACKED BY BOSTONPADS FOR SEPTEMBER 16, 2020, AND HE SAYS THERE ARE 6000 APARTMEN AVAILABLE IN GREATER BOSTON.
THE QUESTION IS, WHERE DID EVERYONE GO?
THE QUESTION IS, HOW MANY DIDN’T COME, VERSUS WHERE DID THEY GO?
TED: WITH MANY AREA COLLEGES GOING VIRTUAL AND PEOPLE LOOKING FOR MORE SPACE AS THEY WORK FROM HOME, SOME ONCE-RELIABLE RENTALS ARE NOW A STRUGGLE TO FILL.
JAMES OWNS A TWO-FAMILY HOME IN SUMMERHILL.
HE LEASES BOTH UNITS IN THIS TYPICALLY HAPPENING HOOD.
>> WE HAD TENANTS FOR FOUR YEARS, $3100 FOR FOUR YEARS, AND WE THOUG MAYBE WE WOULD GO UP A LITTLE BIT.
TE JAMES HAS DONE HIS RESEARCH.
OK AT IT A HALF-MILE FROM THE TUFT CAMPUS, SIMILAR APARTMENTS RENT FOR 4000 A MONTH.
I USED TO TICKET PHONE CALLS PROBABLY A YEAR IN ADVANCE ASKING IF I HAD ANYTHING AVAILABLE IN THE FOLLOWING YEAR.
TED: BUT NOT IN THE COVID YEAR.
>> WE HAVE BEEN TRYING TO GET IT RENTED AND THERE IS NO ACTIVITY.
WE HAVE DROPPED IT DOWN TO $2400.
TED: ACCORDING TO THE RENTAL WEBSITE ZUMPER, RENTS ARE FALLING.
BOSTON’S AVERAGE ONE-BEDROOM RENTAL PRICE FELL 8% FROM SEPTEMBER 19 TO SEPTEMBER 2020 -- SEPTEMBER 2019 TO SEPTEMBER 2020.
>> IT IS IMPACTING US FINANCIALLY BECAUSE THAT EXTRA MONEY IS NO LONGER THERE, SO IT IS A LOT HARDER TO MAKE THE MORTGAGE PAYMENTS.
TED: A REAL ESTATE AGENT, BEN, WHO CALLS HIMSELF NEXGEN BE N, HAS SEEN THIS PLAY OUT.
>> YOU’RE BASICALLY WALKING INSIDE THEIR RETIREMENT.
TED: THIS APARTMENT WAS ORIGINALLY LISTED AT $2550 A MONTH.
IT HAS DROPPED TO $2100 WITH NO FEE.
WHILE MANY LANDLORDS A STRUGGLING TO FIND TENANTS, SOME RENTERS ARE SCORING MAJOR DEALS.
WITH ONLY A FEW DAYS UNTIL HER LEASE ENDED, 23-YEAR-OLD DELANEY GARDNER HAD NOWHERE TO LIVE.
>> I KEPT GETTING DENIED, FURLOUGHED FROM MY JOB.
I EVEN HAD GOTTEN A LETTER FROM MY BOSS SAYING, THIS IS OUR EMPLOYEE, THIS IS HER SALARY.
WE PLAN ON BEING BACK MID TO LATE SEPTEMBER AND WE WILL BE WELCOMING HER BACK, ALL THAT, AND WE HAD NO LUCK.
TED: SHE HIT THE STREET AND WALKED INTO NEXGEN, WHERE SHE MET BEN.
>> IT IS IMPORTANT TO UNDERSTAND THAT EVERYONE HAS A STORY, AND THERE IS A WAY TO GET YOU APPROVED FOR AN APARTMENT.
>> WE WERE LOOKING FOR UNDER $2000.
WE WANTED PARKING, DISHWASHER, ALL THE NORMAL AMENITIES.
TED: BEN MANAGED TO GET DELANEY AND HER ROOMMATE APPROVED FOR ALL OF THAT IN AUSTIN.
WE ARE PRETTY MUCH UNDER BUDGET AND HAVE EVERYTHING WE NEED.
>> WE ARE IN A PANDEMIC.
PRICES HAVE COME DOWN.
IT IS REALLY A TENANT’S BALLGAME.
IF YOU ARE LOOKING RIGHT NOW, IT IS A GOOD TIME TO SNATCH A DEAL.
SHAYNA: ACCORDING TO BOSTON PADS, THE OVERALL RENTAL VACANCY RATE IN THE CITY OF BOSTON I CURRENTLY A LITTLE OVER 7%.
THAT IS A MASSIVE INCREASE YEAR OVER YEA THE VACANCY RATE IN THE SUBURBS IS UNDER 4.5%, STILL A HUGE INCREASE OVER 2019, BUT NOT AS BIG AN INCREASE, AS SOME RENTE
SEEK M