What market factors are allowing Boston's (MA) luxury rental market to explode?

There are many factors that are present, but which ones are the driving forces?
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February 21 2013 - Boston
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Supply and demand, indeed and lots of amenities as well.
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December 19 2013
Profile picture for shapiroamg
Supply and demand is such a better answer.....
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December 19 2013
My opinion on these factors is as follows;
Having been here for about 15 years since college, many buildings for one are quite old, many dated or in fair repair and not reflective of the property options many people may be accustomed to when relocating from most other parts of the country, especially outside of the Northeast.  I have rented many apartments to people, and the lack of quality options with simple things like a dishwasher/ disposal is a let down for many renters who are not accustomed to what Boston has historically had to offer.  $1800-$2000/mo in the Fenway for example will get you in most cases a decent one bed, but all too often only the basics, add in Granite kitchen and much coveted stainless appliances, even in unit laundry and the list of options gets very short.
Developers seems to be finally tuning into the lack of quality incumbent landlords offer, and are exploiting the opportunity.  Now, in the Fenway we are seeing new construction of units which offers all the bells and whistles, and this is going on all over the city, for many renters these are welcome options to consider. 
Demand and supply is certainly a relevant way to explain the surging prices, but is probably not a direct answer to the question. 
The drivers of this activity are more than local (strictly demand and supply), they are regional, and probably even national, in some scopes probably global.  Regionally, Boston is probably the second most expensive city behind New York for the Northeast, and as far as I know, the priciest city in New England.  I encounter more and more from the New York area who relocate here as a less expensive option, I get inquiries for investment from overseas.  Statistically, many are moving back to cities to avoid commuting and other job demands make it a better option. I find more businesses are setting up shop here from New York City too, namely a large investment bank recently moved an entire division to this city. 
If you do a little research, Boston probably offers more long term upside than New York for a developer who wants to target a wide swath of renters, $2000-$4000/mo is probably realistic for well to do professionals, this price band is seeing most of the competition.  This is probably early in this trend still, this city is less developed  and smaller than others. 
Interest rates which were lower a few years ago also gave developers a great opportunity to enter the market.
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December 17 2013
Profile picture for wetdawgs
"It's hard to find someone who doesn't love the charm of Boston and who doesn't want to have a piece of it for themselves."  Nice public relations phrase!    But, it is easy to find people who would be very happy to visit for a day or two, but live as far from Boston as possible.

In other words, you've found one!  wasn't so hard, now was it?

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November 19 2013
It's hard to find someone who doesn't love the charm of Boston and who doesn't want to have a piece of it for themselves.

Boston has never had adequate housing to meet the demand.  Outgoing mayor Tom Menino is trying to encourage the construction of micro-housing units to reflect global trends in urban residential real estate, but for now, apartments and condos are hard to come by.  

Attach yourself to a skilled realtor who will keep you in mind when he/she sees a new listing hit the market.  That's your best shot. 
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November 19 2013
Thx
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March 08 2013
Supply and demand.
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February 21 2013
 
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