What's Hot: Mortgage Rates Fall Towards 6% Following Fed Cut
If You Build Them: Class A Apartment Absorption Above Average for Sixth Consecutive Quarter
✉️ Want to forward this article? Click here.
Rendering of mixed-use building planned in Arlington.
As DC-area employment continues to grow at an impressive rate, with year-over-year growth exceeding the national average, demand for Class A rental housing remains strong in the region, according to Delta Associates’ second quarter report.
With an annual rate of over 10,000 units, absorption of Class A apartments in the DC metro area exceeded the long-term average for the sixth consecutive quarter. The above-average absorption is coupled with rental rates for Class A and Class B apartments rising 2.5 and 2.4 percent, respectively, since the second quarter of 2015.
It is projected that over the next 36 months, absorption rates will continue to exceed the ten-year average. “This projection is predicated upon the “de‐nesting” and “un‐grouping” of potential renters currently living with parents or roommates, along with job growth and a stable or rising ratio of renters to owners,” the report states.
story continues below
loading...story continues above
While 33,000 new apartment units will come online in the region over the next three years, the report predicts that region-wide vacancy will drop 40 basis points to 3.7 percent in 2019, but vary notably from sub-market to sub-market.
Here is a quick snapshot of average rents for high-rise Class A apartments in DC area sub-markets, as defined by Delta:
Note: The rents are an average of studios, one and two-bedroom rental rates at new buildings in the DC area.
Definitions:
Class A apartments are typically large buildings built after 1991, with full amenity packages. Class B buildings are generally older buildings that have been renovated and/or have more limited amenity packages.
See other articles related to: absorption rate, class a, class a apartments, delta associates, rental rates in dc, renting in dc
This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/apartment_absorption_above_average_for_sixth_consecutive_quarter/11477.
Most Popular... This Week • Last 30 Days • Ever
A plan to add another new residential building to the Friendship Heights pipeline is ... read »
Mortgage rate buydowns can be a good option for buyers who want to save money on inte... read »
Plans filed this week provide the latest look at the 106-key hotel in the works at an... read »
The eight-bedroom, 35,000 square-foot home in McLean known as The Cliffs went under c... read »
The large new development would take the place of the Ballston One office building al... read »
- Donohoe Files PUD For 127-Unit Development in Friendship Heights
- How Does a Mortgage Rate Buydown Work?
- A Look At Georgetown's New 100-Key Hotel Along The Canal
- A $30 Million Sale? One Of The DC Area's Most Expensive Homes Finds A Buyer
- Updated Plans Filed For 328-Unit Development At Arlington Office Site
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro