Strong Demand Elevates DC Apartment Market
Washington, DC is the East Coast’s best apartment performer. Apartment demand was solid in DC at nearly 8,200 units in the year-ending 3rd quarter. While that was a bit behind the five-year average for the nation’s capital, absorption here was among the top showings in the U.S. in the past year. As a result, Washington, DC occupancy is holding relatively stable, ahead of the U.S. norm and right around the market’s decade average. While new lease trade-out isn’t sizable in DC, a rate of 2.3% as of 3rd quarter still outperformed the national average, a place the market has held onto steadily for six consecutive months. That was the first time in a decade that new lease trade-out in Washington, DC outperformed the U.S. for such a long period. Rent growth has generally been strongest in suburban submarkets that have witnessed minimal supply in recent years. In contrast, high-supply urban areas tend to lag the market average.
For more information on the East Coast apartment markets, including forecasts, watch the webcast Market Intelligence: Q4 East Coast Update.