Boston’s Suburban Shift: Marcus and Millichap Highlights Emerging Multifamily Investment Hotspots MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

Boston— Suburban markets are taking center stage in Greater Boston’s multifamily housing landscape, according to the newly released quarter two 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:

Construction Remains Strong: Over the past twelve months, six thousand seven hundred and sixty one 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. Vacancy Rates Fall: The metro’s vacancy rate dropped by fifty basis points year-over-year to four point three percent, 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 one hundred basis points.

Rent Growth Continues: Effective rents rose two point six percent over the past twelve 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. Sales Activity Surges: Multifamily sales jumped thirty three percent 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.

Suburban Supply and Demand: Submarkets like East Middlesex and South Essex delivered approximately eight hundred units in 2024, with over two thousand units expected in 2025. Lowell, after a three-year pause in development, is preparing to add roughly four hundred 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.

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