DC Area Class A Rents Rise at Fastest Pace Since 2010

• April 8, 2016

by Nena Perry-Brown

Rendering of rentals planned at 301 Florida Avenue

In the last 12 months, Class A apartment rents in the DC area rose at their fastest pace since 2010, according to a new quarterly report from Delta Associates.

The rents for Class A apartments (defined as large buildings built after 1991, with full amenity packages) rose 2.6 percent over the last year, with the largest increases in the Upper NW sub-market (6.9 percent), Rosslyn-Ballston Corridor (4.7 percent) and Silver Spring/Wheaton (7.1 percent).

Rental rates went up as absorption rates remained well-above their long-term average.

“Washington continues to experience above-average Class A absorption, as 12,427 Class A units were absorbed in the 12-month period ending March 2016 — more than double the region’s 10-year average,” the Delta report stated.

Although absorption has outpaced the number of rental units delivered over the past year, rent growth is expected to slow as a large volume of new apartments comes online this year.

Here is a quick snapshot of average rents for Class A rentals in high-rise apartments in DC area sub-markets, as defined by Delta:

• Alexandria: $2,003 per month
• Rosslyn/Ballston: $2,346 per month
• Bethesda: $2,511 per month
• Upper Northwest: $2,967 per month
• Central (Penn Quarter, Logan Circle, Dupont Circle, etc.): $2,821 per month
• Columbia Heights/Shaw: $2,572 per month
• NoMa/H Street: $2,294 per month
• Capitol Hill/Riverfront: $2,324 per month
• Upper Georgia Avenue: $2,076 per month

This article originally published at http://dc.urbanturf.com/articles/blog/dc_area_rents_have_risen_at_fastest_pace_since_2010/11083