What's Hot: RFK Stadium Cleared For Demolition | Airbnb Unveils Icons
If You Build Them: Class A Apartment Absorption Above Average for Sixth Consecutive Quarter
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 https://dc.urbanturf.com/articles/blog/apartment_absorption_above_average_for_sixth_consecutive_quarter/11477.
Most Popular... This Week • Last 30 Days • Ever
Georgetown Metropolitan reported on Tuesday that the Instagram account for the nation... read »
A Home Equity Line of Credit, commonly referred to as HELOC, is a borrowing product t... read »
The National Park Service has given the green light for DC's 62 year-old stadium to b... read »
UrbanTurf continues our tour of neighborhood developments around the region as we tak... read »
A regular inclusion as one of DC's most expensive housing markets, Georgetown remains... read »
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