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Capitol Riverfront and H Street See Big Rent Increases

by UrbanTurf Staff

Capitol Riverfront and H Street See Big Rent Increases: Figure 1
The apartment building Archstone First + M in NoMa.

Back in April, we reported that the DC area could be a renter’s market, at least for a spell, by later this year. While that still may be true, rents in DC proper have increased notably, particularly in specific neighborhoods, over the last year.

A report out earlier this week from Delta Associates analyzing the regional apartment market in the second quarter of 2012 states that rents for Class A apartments in the city are up 6.8 percent versus last year, with the largest increases in the upcoming sub-markets of NoMa/H Street (10.3 percent) and Capitol Hill/Capitol Riverfront (9 percent). To give these percentages some real meaning, Class A apartments in DC now rent for $2,613 a month on average compared to $2,481 a month last year; a Class B apartment rents for $1,892 compared to $1,794 last year. (The rents are a weighted average of all the units in the city.)

Capitol Riverfront and H Street See Big Rent Increases: Figure 2
Courtesy of Delta Associates.

Here is a quick snapshot of average rents for investment-grade apartments in DC sub-markets, as defined by Delta:

  • Central: (Penn Quarter, Logan Circle, Dupont Circle, etc.) — $2,837 a month
  • Upper Northwest: $2,656 a month
  • Columbia Heights/Shaw: $2,590 a month
  • NoMa/H Street: $2,545 a month
  • Capitol Riverfront: $2,347 a month

The rent increases (that will likely make area residents shudder) are closely tied to vacancy rates. The vacancy rate in the city for Class A apartments sits at just 2.5 percent, compared to 3.8 percent last quarter and 4 percent at this point last year, and for Class B apartments, it is just 2.7 percent.

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.

This article originally published at https://dc.urbanturf.com/articles/blog/capitol_riverfront_and_h_street_see_big_rent_increases/5735

3 Comments

  1. Liz said at 10:32 pm on Thursday July 5, 2012:
    Hence....there is need to move to Anacostia. The area is so close to DC yet so far away -figuratively speaking. There needs to be an active partnership and incentives by the government to move retail and big stores to Anacostia -- people will follow. The high rents are being driven by the proximity to mass transport, shopping and living. Same can be had across the river.
  1. A said at 2:34 am on Friday July 6, 2012:
    I think the relocation of Homeland Security and other agencies to the former St. Elizabeth's Hospital grounds near Anacostia will a game changer for that part of DC. Housing in that area will suddenly look very attractive to the many employees that will start working there; this will further drive the need shops, restaurants, etc., which will then in turn increase the attractiveness for living there. Not sure on the timing of complex there, but I suspect there is still good upside for the right properties around there.
  1. Tom A. said at 7:01 pm on Friday July 6, 2012:
    I can vouch for the H Street are rent increase. In late 2009 I couldn't rent my small 2 bedroom house for the $1500 I was asking for, so had to lower it a bit. A year later, 10 people wanted to rent it for $1600. Who knows how much I could get for it now.

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