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Boston’s luxury housing boom slows down

Buying Luxury New Developments
1 Franklin St., Ph 4B sold for $10.9 million on Tuesday.
Millennium Tower in Boston features multimillion-dollar luxury condos. Keith Bedford/Globe Staff

The epic building boom that has added thousands of luxury housing units in the Boston area may have peaked, as a report to be released Tuesday by an influential foundation suggests the region has run out of customers willing to shell out huge sums in monthly rents.

The Boston Foundation says the number of permits for new housing units issued in Eastern Massachusetts is expected to fall by nearly 20 percent this year, the first decline since the most recent surge of construction began in 2011.

Housing specialists attribute the drop-off to the higher end of the housing market, where units can rent for $3,000 a month or more in and around Boston. What’s not clear, they say, is if the slowdown is a blip or a longer-term shift at a time when the addition of new units was just starting to dampen rents across the market.

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