Apartment renters forced into bidding wars as landlords look to make up for lost money
BOSTON -- Massachusetts College of Pharmacy sophomore David Seppelin had no idea what he was getting into when he started searching for an apartment for himself and two friends. They wanted to live near campus in the Fenway or Mission Hill neighborhoods but could not find anything.
"It's been a huge struggle," he said, describing his disappointment when they lost out on more than ten apartments.
CEO of Boston Pads, Demetrios Salpoglou, said the current rental market is like nothing he's ever seen.
"There are certain neighborhoods that have almost no vacancy whatsoever," he said, and that includes both Fenway and Mission Hill.
Most Boston leases begin September 1 and the competition right now is fierce, according to Salpoglou. "We've had more deals die this year than any other year. Agents submit the applications but [they] just get beat out."
"It's affecting everybody, students and working professionals," explained Jacob Realty agent Kristian Kotov.
This isn't just about affordable housing, there are shortages at almost every price point. Northeastern University researcher and PhD candidate Kris Govertsen and her high-earning boyfriend have been looking for a place for several months.
They have been advised by realtors to offer more than the list price so that their applications will be prioritized, but they are still being outbid by hundreds of extra dollars a month.
She said they may have to move farther out of the city than they wanted, or worse. "We might have to couch-surf for a while," she said.
"We've got a confluence of events creating short supply," Salpoglou said, explaining that more students are back in the city as well as workers returning to the office. There are also rising interest rates forcing some home buyers to continue renting.
According to Kotov, many landlords lost money due to eviction moratoriums during COVID, and now they are more strict with tenant qualifications.
Some are requiring renters to have credit scores above 700 and lengthy work histories, which leaves recent college grads with decent jobs out of the running. "I have heard [landlords] requiring as much as $30,000 in the bank and 12 months' worth of bank statements," Kotov said.
David and his friends finally found a place in Jamaica Plain, but it's nowhere near campus and not handy to the MBTA. "Right now we are about a 30-minute commute from the school," he said. David has a car, but thinks riding his bike will save him time.
The JP apartment isn't exactly what they hoped for, but given the current market, he's just happy they have something. "It seems like we found a place just in time."