DC Area Rents Drop 3% As New Apartment Supply Rises
✉️ Want to forward this article? Click here.

The Shay, a 245-unit apartment project planned in DC.
A report out today from Delta Associates analyzing the regional apartment market in the fourth quarter of 2013 reveals that rents for Class A apartments (large buildings built after 1991, with full amenity packages) in the DC area dropped 3 percent last year, a clear sign that the supply of new apartments is catching up to demand in the area.
Class A rents fell year-over-year by about a percentage point in upper NW DC and also dropped in the Rosslyn-Ballston Corridor (-2.4%) and Silver Spring (-6.8%) Rents did not fall everywhere, however. In DC proper, rents actually rose by 0.8 percent despite the large number of new apartments delivering, thanks to a continued high level of demand. In the NoMa/H Street sub-market, rents increased 3.9 percent.
Here is a quick snapshot of average rents for Class A apartments in DC area sub-markets, as defined by Delta:
- Central: (Penn Quarter, Logan Circle, Dupont Circle, etc.) $2,822 a month
- Upper Northwest: $2,648 a month
- Columbia Heights/Shaw: $2,480 a month
- NoMa/H Street: $2,295 a month
- Alexandria: $1,955 a month
- Rosslyn-Ballston: $2,337 a month
- Tysons Corner: $1,746 a month
- Bethesda: $2,580 a month
Note: The rents are an average of studios, one and two-bedroom rental rates at new buildings in the DC area.
There are a number of reasons that rents are now falling, but primarily it is due to high levels of new supply and a pipeline that now seems oversized compared with demand. For loyal UrbanTurf readers this should not come as surprise. In 2012, we reported that the delivery of new apartment projects (and resulting increase in vacancies) will put downward pressure on rents.
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/dc_area_rents_drop_3_as_new_apartment_supply_rises/7979.
Most Popular... This Week • Last 30 Days • Ever

A shorter version of the development is now on the table.... read »

The center for the Washington Capitals is listing the 16,000 square-foot home for jus... read »

A Home Equity Line of Credit, commonly referred to as HELOC, is a borrowing product t... read »

Back in 2023, Aria Development Group acquired a commercial building in Ballston with ... read »

DC would be following Montgomery County's lead if this bill passes.... read »
- Plans For 32-Unit Condo Project Next To 16th Street Church Filed With DC
- Washington Capital Nicklas Backstrom Puts McLean Home On The Market
- What is a HELOC and How Does it Work?
- A First Look At A New 22-Story, 300-Unit Development Planned In Ballston
- A Proposed Bill Would Give 20-Year Tax Abatement To New Development At DC Metro Stations
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