Another apartment tower was given the green light by city officials recently, adding to the already 1,000-plus rental units in the pipeline for Downtown Boston.
Real estate brokers, analysts and developers claim the influx of new apartment projects is attributed to the demand for rentals in Boston, the slow economic climate and the difficulty for investors to secure financing for condo developments.
“It ultimately comes down to supply and demand. The combination of less qualified buyers and those who are still wary of a home as a secure investment add to the growing number of active renters,” says Paul Santucci, a real estate broker with Boston Realty Advisors. “Developers who most likely experienced a lag in the sales of their condo developments over the past three years can bank on their apartments being rented at a much quicker pace.”
Groundbreaking on The Kensington, located at the corner of Washington and LaGrange streets near the Financial District, is expected this summer, according to the Boston Redevelopment Authority, which approved the $172 million plan earlier this month. The 27-story tower will have 385 rental units.
Just a few blocks over, close to 300 additional rental units are expected to be built on Hudson Street in Chinatown (known as Parcel 24), with dozens more at Hayward Place in Downtown Crossing.
And near North Station, there is a plan for 500 rental units by a Chicago-based developer at the Garden Garage site.