All signs point to a luxury apartment market in the DC area that has fully recovered from the pandemic.
Class A apartment rents in the region are now higher than before the pandemic started, according to a new report from Delta Associates on the third quarter market. This rebound is largely due to the record-high apartment absorption observed over the past year, to the tune of 16,367 units in the area. Rent recovery has been somewhat uneven, however.
The Suburban Maryland submarket has average rents that are 104% of what they were in March 2020. Similarly, annual absorption increased by 159% year-over-year, compared to a 76% increase seen in Northern Virginia. Average rents in Northern Virginia during the third quarter were 102% of what they were in March 2020.
In DC, however, rents are still below (96.6%) what they were in early 2020. This is despite the fact that annual absorption citywide increased by 201% year-over-year, hitting a record high of more than 7,000 units absorbed.
The Capitol Hill/Capitol Riverfront/Southwest submarket led the metro area in absorption, with 3,690 units leased in the past year. Meanwhile, the NoMa/H Street submarket led the region in apartments delivered, with 2,027 units entering the market since late 2020. Both of these areas account for two-thirds of the city's 15,000-unit 36-month pipeline.
As for the region overall, there are 37,100 apartments in the 36-month pipeline, 4,500 fewer than were in the works a year ago. Nearly 15,000 units are slated to deliver over the next 12 months, 33% more than delivered in the year prior.
Here is a quick snapshot of average rents for high-rise Class A apartments in DC area sub-markets, as defined by Delta:
- Alexandria: $2,154 per month
- Bethesda: $2,762 per month
- Capitol Hill/Capitol Riverfront: $2,516 per month
- Central (Penn Quarter, Logan Circle, Dupont Circle, etc.): $2,938 per month
- Columbia Heights/Shaw: $2,577 per month
- Crystal City/Pentagon City: $2,450 per month
- Hyattsville/College Park: $1,967 per month
- NoMa/H Street: $2,353 per month
- Northeast: $2,161 per month
- Rosslyn-Ballston Corridor: $2,598 per month
- Silver Spring/Wheaton: $2,039 per month
- Upper Northwest: $2,942 per month
Note: The rents are an average of studios, one and two-bedroom rental rates at Class A high-rise 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 https://dc.urbanturf.com/articles/blog/how-class-a-apartment-market-has-recovered-in-the-dc-area/18869.
Most Popular... This Week • Last 30 Days • Ever
President Biden will sign the largest climate bill in history into law this week.... read »
The Washington Nationals great didn't move out of the area, though.... read »
UrbanTurf put together a quick primer on the ins and outs of a home auction.... read »
As the Capitol Riverfront neighborhood nears its development capacity, a new effort p... read »
Foulger Pratt has plans to turn the 12-story office building at 1133 19th Street NW i... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
This Week's Find is one of the more interesting homes in DC's Foxhall neighborhood. ... read »
The mall will be reimagined as a 7-story, 325-unit apartment project with 25,000 squa... read »
While DC's rising home prices have been the story for years, there are some areas of ... read »
Approximately 25% of listings on the market in the city have experienced a price redu... 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