While modest, the two straight quarters of decline ended a streak of 32 consecutive quarters where the average effective rent climbed in the city.
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The average apartment rent has been on a slight decline in Worcester for the past two quarters, the first the city has seen a two-quarter decline in the past 16 years.
The market effective rent in Worcester stood at $1,845 in the first quarter of 2026, according to figures from real estate firm CoStar. That is down $2 from the previous quarter. This followed a slightly steeper $9 decrease in the fourth quarter of last year.
While modest, the two straight quarters of decline ended a streak of 32 consecutive quarters where the average effective rent climbed in the city.
The average rent climbed from $1,414 to $1,852 during that 32-quarter period beginning in the fourth quarter of 2017, an increase of 31.3%.
The last time Worcester had two quarters of consecutive decline was in 2010, as rents fell consistently from the fourth quarter of 2008 to the first quarter of 2010 in the wake of the 2008 financial crisis.
Throughout Massachusetts, the average rent declined $17 between the third quarter of 2025 and the fourth quarter, but climbed $35 in the first quarter of 2026, leaving it at $2,544.
Even with the two-quarter decline, the average rent in Worcester has climbed 35.7% since 2016. This compares to a 32.6% increase across the state.
CoStar's Worcester data was derived from 21,208 units across 978 multifamily properties in the city. Of the included apartments, 18% were studios, 43% were one-bedroom units, and 29% were two-bedroom units, with the remaining 10% consisting of three- and four-bedroom units.
The decline in rents came as multiple newly constructed apartments came online in 2026.
Construction was completed on the 210-unit Poet Hill Place apartments in January, with units now listed for rent. The 28-unit Railroad Lofts luxury apartments at 383 Shrewsbury St. were completed in February and are now leasing.
Construction started on 1,291 new Worcester units in 2025, up from 755 in 2024. Construction started on 116 units in the first quarter.
Despite some progress, market conditions continue to have an impact. Boston Capital, a firm looking to build a 78-unit building at 120 Washington St., is seeking a two-year extension for the project from the Worcester Planning Board.
Such requests have been a common occurrence in the past two years, with a letter to the planning board from Boston Capital Principal Rich Mazzocchi citing the impacts of construction cost increases, interest rates, and tariffs. The extension request is set to be heard at the planning board’s May 13 meeting.
The two-quarter decline in rent comes amid debates over the impact of environmental building codes and the potential impact of the rent control ballot initiative on track for November’s ballot.
Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries.
