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Developers in Boston shift away from new high-rise multifamily projects
Developers cited rising construction costs and flattened rents in Greater Boston as reasons for moving toward low-rise suburban projects rather than downtown towers.
Boston's wave of high-rise apartment and condo towers has largely stopped, with multifamily developers moving away from building downtown after a shift in economics across Greater Boston, according to Bisnow.
At Bisnow's Multifamily Annual Conference New England in South Boston, developers said they do not expect to build new high-rise apartment towers anytime soon, pointing to higher construction costs and rent flattening in the region.
David Gillespie, senior vice president of development at Vivmark Residential, said the company expects that it has built the bulk of the high-rise apartment stock it will deliver over the next decade, noting his experience building the Avalon Exeter 28-story apartment tower in Boston's Back Bay.
Bisnow reported that Gillespie contrasted current conditions with those when AvalonBay started construction of Avalon Exeter in 2011, when he said the planning environment was different, as the industry now turns to low-rise projects outside the urban core.