Home | Newsletter | Advertise
loading...

Fall Market Predictions: More Choices, More Concessions For Renters

  • September 5th 2013

by UrbanTurf Staff

✉️ Want to forward this article? Click here.

As fall approaches, there are a number of questions floating around about the DC area housing market. Will the tight inventory in the for-sale market continue? Will the slew of new apartments entering the rental market push rents down? Will the effects of sequestration become more noticeable?

With these questions in mind, each day this week UrbanTurf will be hearing the predictions and trends that local industry professionals believe will play out in the fall market. In today’s prediction, the founder of Delta Associates explains why renters will find more choices and possibly more deals in the coming months.

Fall Market Predictions: More Choices, More Concessions For Renters: Figure 1

Renters Will Have More Choices, Buildings Will Offer More Concessions

By Gregory H. Leisch, CRE — Founder and Chief Executive, Delta Associates

The commercial real estate cycle will continue to move in favor of the renter this fall, as the development industry delivers an outsized number of apartment projects/units to the market. While this will not result in rents declining as much as tenants may have hoped, there will be many more choices on the market, which could result in the return of concessions or specials on new leases.

Fall Market Predictions: More Choices, More Concessions For Renters: Figure 2

While rents are down 0.8% metro-wide since last year, an increase in the number of actively marketing new projects is what will benefit the area renter this fall. For example, metro-wide in 2011 there were 23 new projects actively marketing. Today there are 52 and by the end of the year there will be 60 projects actively marketing new units.

The abundance of new choices could mean more concessions as well. While still low, concessions at Class A apartment projects in the region increased slightly to 2.4% of face rent in the middle of 2013 versus 1.9% a year earlier. This trend could continue as the new projects hit the market in the coming months.

See below for more fall predictions.

See other articles related to: dclofts

This article originally published at https://dc.urbanturf.com/articles/blog/fall_market_predictions_more_choices_more_concessions_for_renters/7518.

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

Red Flags Revealed During a Home Inspection Top 5 Tax Breaks For Homeowners Tax Relief for DC Homeowners
Condo Fee Tutorial What is a Rent Back? 10 Ways To Tell If a Home Renovation is Well Done
Obtaining a Basic Business License For Your Rental What is an Adjustable Rate Mortgage? The Splitting the Rent Formula
How Much Cash Do You Need to Buy a House? Is This Condo Building Financially Healthy? Interest Rates and Mortgage Points
The Scoop on Mortgage Insurance

Unique Spaces

Awesome and unusual real estate from across the DC Metro

The Most Intriguing Loft in DC The R Street Firehouse DC’s One-Room House
Dupont Circle’s Old Frat House To Become Alley Home Best Transition From a Garage To a Home The Roundhouse
Tilden Gardens Restaurant-Turned-Home Hits Market Next Week Logan Circle’s Most Intriguing Garage Frank Lloyd Wright Goes Green in Kensington
Sears Bungalow Gets a Modern Makeover Old Town General Store Becomes Three-Level Home Making the Most of a Skinny House
A Studio 27 Renovation on Capitol Hill Once a Carriage House, Now a Home The Bank that Became a Home
From Pie to Hooch to Heroin to Home The Live-Aboards of Gangplank Marina A Treehouse with Rock Creek Park As A Backyard
Modern Tranquility in Sperryville Saddle Up For Stable Living Throwing a Curve at 550 Square Feet
A Modern Hilltop Retreat Tilden Street Restaurant Becomes Spacious Home Focus on Design: A Vastu Unit at 22 West
The DC Area’s First Net Zero Home A Yankee Goes Green DC’s First Carbon Neutral Home
Eco-Friendly Alley House Off H Street The Gym, The Stables and The Firehouse