What's Hot: Plans Progress For a New Grocery Store at Friendship Heights Mall | Move-In Ready Townhomes at EYA's Northeast DC Neighborhoods
Class A Apartment Absorption Dropped Off in the DC Area in the Final Quarter of 2016
A new rental building at 5333 Connecticut Avenue NW.
Last October, UrbanTurf noted that Class A apartment absorption was still going strong in the DC region but was showing signs of slowing. A new report from Delta Associates indicates that this slowdown is underway, with absorption dropping off in late-2016 after seven consecutive quarters of growth.
“While job growth is strong and supply remains plentiful, the wave of new Millennial households that helped the region absorb a record 13,429 apartments in calendar year 2015 appears to be slowly subsiding,” the report explains. “Between now and 2019, the vacancy rate likely will rise to nearly 5% as the level of deliveries remains elevated in the short term.”
story continues belowloading...
story continues above
Overall, annual absorption in DC proper was down 25 percent compared to the year before, but increased in the Upper NW (22%), Capitol Hill/Riverfront/SW (43%) and Northeast (52%) sub-markets. Rents were also up in all except one DC submarket (Upper Georgia Avenue); however, this is expected to be kept in check by the projected delivery of over 10,000 apartment units over the next two years.
The drop in absorption is in line with reports in a Washington Post article from late-2016 that the flood of young professionals to the city is slowing.
“Washington saw a net increase of roughly 2,300 new residents from other states between July 2015 and July 2016, the Census Bureau reported in its year-end population estimates,” the Post article stated. “The figure marked a steep drop-off from five years ago, when net migration to the city from other parts of the United States exceeded 7,000.”
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.
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/class_a_apartment_absorption_dropped_off_in_the_final_quarter_of_2016/12075.
Most Popular... This Week • Last 30 Days • Ever
Clarion Partners, the owner of the Chevy Chase Pavilion, has filed modifications to i... read »
The new development keeps humming along in DC's Buzzard Point.... read »
It is early in the year, but there are already a number of areas around DC where home... read »
Where it's cheaper to build than buy; Elon Musk is not making Texas happy; and the wo... read »
If you are tired of getting lost in their stores, IKEA has a new location planned tha... read »
At an ANC 4A meeting on Tuesday night, representatives from Whole Foods said that the... read »
The application to raze the infamous fast food location at New York and Florida Avenu... read »
While homeowners must typically appeal by April 1st, new owners can also appeal.... read »
The application has been filed for the American City Diner along Connecticut Avenue i... read »
The 650,000 square-foot project, designed by Adjaye Associates and Hickok Cole, will ... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
- Whole Foods at Walter Reed To Open This Summer
- The End is Here: Raze Permit Filed For Wendy's at Dave Thomas Circle
- How to Appeal Your DC Property Tax Assessment
- Raze Application May Spell The End For One of DC's Last Diner Buildings
- A First Look at the Five-Building Centerpiece of the St. Elizabeth's Redevelopment
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. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro