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.
Courtesy of Delta Associates. Click to enlarge.
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.
- 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/dc_area_rents_drop_3_as_new_apartment_supply_rises/7979
Most Popular... This Week • Last 30 Days • Ever
UIP recently filed plans with DC's Historic Preservation Office for a 321-unit develo... read »
The new store will open at 9am on July 13 at the City Ridge development.... read »
The grocer has announced plans for other stores in Skyland and Columbia Heights.... read »
Federal Realty Investment Trust has submitted preliminary plans to the Montgomery Cou... read »
UrbanTurf looked at median prices for condos, co-ops, rowhouses and detached single f... read »
DC's homebuyer assistance programs can be a bit complex. This edition of First-Timer ... read »
Our guide for amateur landlords who don't really know what they're doing.... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
The eight-bedroom, 35,000 square-foot home known as The Cliffs hit the market Wednesd... read »
Brookfield Properties is moving forward with development plans for additional sites i... 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 »
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