Highlights:
- More than 45,000 investment-grade apartment units were completed in the Washington, D.C. market between 2021 and 2023, putting upward pressure on the vacancy rate. The majority of the projects delivered in the Washington, D.C. and Suburban Maryland submarkets.
- Operating metric trends diverged because of the impact of this new supply. The Northern Virginia submarket outperformed the District and Suburban Maryland.
- Apartment sales volume declined by 60% compared with the prior year, and pricing weakened both in terms of the transactional cap rate and price per unit.
- Market conditions should improve in the years beyond 2025 because of the slowdown in development and steady long-term demand.
Fill out the form to access the full report:
Additional Insights:
Apartment conditions in Washington, D.C. were mixed through the beginning of 2024. New construction led to softer operating conditions in certain submarkets, despite favorable demand drivers across the market.
Annual rent growth accelerated during the last six months, and average apartment rent increased by nearly 3% in the first quarter of 2024, more than doubling the national rate. However, the aggregate level of growth masked the variation between submarkets. Rent gains were the strongest in Northern Virginia, where fewer developments came online in recent years.
Washington, D.C: Economic Advantages Lead to Apartment Stability, one of Lument’s two Q1 2024 market spotlights, was developed in partnership with Rosen Consulting Group, and gives an in-depth look at the Washington, D.C. market.
