By Thomas Grillo
Rents in south Essex County are rising, pushed by tenants seeking relief from even higher prices in Boston, according to new data from MPF Research.
Average rents on the North Shore in communities including Lynn, Peabody, Marblehead, Lynnfield and Saugus swelled to $1,760 in the third quarter, up from $1,660 for the same period last year, a 6 percent increase.
“We’re seeing the overflow from people who are priced-out of places like Boston, Malden, Medford, Everett and Revere and that’s driving rents in Lynn and the North Shore,” said Eugene Clements, broker-owner of Clements Realty Group in Lynn. “We have a lot to offer and it’s just an extra five-minute commute into Boston.”
The biggest rent hikes came in larger units. The average rent for a two-bedroom unit increased to $1,920 from July through September, a nearly 8 percent hike from a year ago when the same apartment cost $1,778. Among three-bedrooms, the average cost reached $2,101 in the third quarter, that’s up from $1,948 last year, also a nearly 8 percent rise.
The latest survey by the National Apartment List reported Boston is the third most expensive rental market in the U.S., followed by New York and San Francisco. An average two-bedroom in the Hub is leasing for $3,200 while a one-bedroom is fetching $2,800, up 2.3 percent over last year.
“Rents have increased on the North Shore, but they have really skyrocketed in Boston,” said Clements. “People have no problem paying $1,800 for a three-bedroom here since they would pay a lot more than that for a two-bedroom closer to Boston.”
Rents for studio and one-bedroom apartments did not rise as much. Average third quarter rents for one-bedrooms increased to $1,479, up from $1,427, a 3.6 hike. Rents for studios rose slightly to $754, up 1 percent from $745.
One of the other factors that’s driving rents is the occupancy rate, which reached 98 percent from January through September. That’s up from 97 percent for the same period in 2014.
Gordon Hall, president of The Hall Co., a Lynn-based real estate firm, said the only vacancies in his nearly 700 units are the ones that are undergoing renovation.
“The only empty apartments are the ones we are working in,” said Hall, who also serves as a director of The Daily Item. “As soon as we install a new kitchen or bath it’s occupied.”
Rents for a two-bedroom in Lynn are averaging between $1,200 and $1,800, he said
“Occupancy and rent levels are very high, in part, because we have a full employment economy in eastern Massachusetts at under 5 percent ” he said.
Carl Aloupis, broker-owner of CSA Realty in Swampscott, who is listing a four-bedroom townhouse on Nahant Place in Lynn for $2,700, said it’s simply supply and demand.
“Rents are up everywhere, it’s crazy,” he said. “I can’t explain why there are so many people looking, but if I list a one-bedroom apartment, I’ll get 250 inquires. A few years ago, we didn’t get that many calls. This year is different and I hope it continues.”
Thomas Grillo can be reached at tgrillo@itemlive.com.