Class B Rents Up in DC and Northern Virginia

• July 27, 2015

by UrbanTurf Staff

As the number of lower-wage jobs increased in the DC area over the last year, the rents for Class B apartments in the region have risen and the absorption level has skyrocketed.

Both high- and low-rise Class B buildings saw rent increases in the second quarter of 2015, rising 4.3 percent in DC and 2.3 percent in Northern Virginia, according to a report from Delta Associates. Rents in suburban Maryland dropped slightly.

However, the speed at which Class B apartments are being leased echoes our article from last week:

“[The increasing rents] were driven by the absorption of 2,684 Class B units over the last twelve months — almost nine times the five‐year average of 300 units per year,” the report read.

Here’s a look at average rents for high-rise Class B apartments in certain Delta-defined submarkets:

• Upper Northwest: $2,106 a month
• Mt. Vernon Square: $1,970 a month
• Bethesda/Chevy Chase: $2,005 a month
• Silver Spring: $1,671 a month
• South Arlington: $1,618 a month
• Falls Church/North Arlington: $2,071 a month
• Crystal City: $2,061 a month

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.

This article originally published at http://dc.urbanturf.com/articles/blog/class_b_rents_up_in_dc_and_northern_virginia/10170