While much of the real estate conversation around Massachusetts focuses on homeownership, there’s an important trend unfolding beneath the surface: several towns and suburbs around Boston are seeing renter households outpace owner-occupied homes. For real estate investors and property managers, understanding this “rental gap” offers valuable insight into where demand is rising—and where opportunity may be lurking.

What’s Happening? Rental Share Rising Near Boston

Recent data shows that suburbs of Boston are becoming renter-dominant in some cases. For example, a study found that between 2018 and 2023, suburban renter households in the Boston metro area grew by around 7% — outpacing the city’s own growth of 5.2%.
Several towns now report renter occupancy rates above 50% — and even around 70% in some locations such as Lawrence, Massachusetts, and Chelsea, Massachusetts.
This shift signals that the housing landscape is changing — and that investors should pay close attention.

Why Are These Towns So Renter-Heavy?

Here are some of the key drivers:

• Affordability Pressures: As home prices climb around Boston, buying becomes less accessible for many households. This drives more people into the rental market. The rental growth in suburbs outpacing the city itself reinforces this.

• Lifestyle and Work Shifts: With more flexibility around remote or hybrid work, some households choose suburban locations while renting rather than committing to purchase.

• Supply & Zoning Dynamics: In some towns, there may be more rental-friendly housing stock or fewer buyer-ready properties, meaning the rental option is stronger.

• Demographics & Mobility: Younger households, workers in transitional phases, or those moving for jobs may prefer renting near suburban centers rather than buying.

What It Means for Investors

For property investors and managers, these renter-heavy towns offer unique opportunities — along with specific risks.

Opportunities:

• Strong rental demand means potential for consistent occupancy and income.

• Lower competition from buyers can mean more favorable acquisition pricing for multifamily or duplex/triplex properties.

• Ability to cater to a growing rental population (families, young professionals) by offering quality rental units in suburban settings.

Challenges & Considerations:

• High renter share may also mean large existing rental supply — you must build a competitive edge (amenities, condition, management).

• Towns with high renter shares could have less upward pressure on home-prices (which can impact resale value).

• Understand local zoning, tenant protections, and property taxes — rental-heavy towns may also have more regulations.

• Consider infrastructure, transportation, school systems and long-term attractiveness — rentals thrive short-term, but appreciation may depend on broader fundamentals.

How to Identify the Best Towns for Rental Investment

When evaluating Massachusetts towns for rental investment near Boston, consider:

• The ratio of renters vs. owners (look for towns where renters are growing).

• Median rents vs. mortgage cost in the area — the “rent-to-buy” ratio.

• Accessibility to jobs, transit, amenities — renters often value convenience.

• Local housing policy: Are short-term rentals restricted? What are tenant protections?

• Supply vs. demand: Are new rental developments pushing supply up? Or is vacancy low?

Spotlights: Towns Worth Watching

• Lawrence: A near 70% renter household share indicates a strong prevalence of rentals.

• Chelsea: Also around the high 60s for renter share.

• Brookline & Watertown: Recently flipped to majority-renter status among Boston suburbs.
  These examples illustrate the kinds of suburban towns where rental demand is high — and where investor interest may grow.

Massachusetts’ hidden housing dynamic — suburbs and towns with more renters than owners — is important for anyone involved in real estate. Whether you’re buying rental property, managing a portfolio, or advising clients, understanding where rental demand is growing can help you position yourself strategically.

In the evolving Massachusetts market, being aware of these rental gaps gives you an edge: you’re not just looking at home-buying markets, you’re looking at rental-driven growth.

Matt Witte strives to be the best realtor in North Andover, MA.

Any questions about real estate, reach out to Matt Witte, North Andover Realtor, MA