In light of recent news regarding the massive imbalance in construction of new apartment units to condo units, UrbanTurf is re-publishing an article from July that speaks to how long it will take for new condo construction to catch up with demand.
The new condo supply in the DC area is currently at its lowest level in ten years. However, the imbalance is slowly turning around.
According to William Rich, a senior vice president at Delta Associates, the high number of condo construction starts planned for the remainder of this year will increase supply notably over the next 36 months. About 2,300 units are scheduled to start construction this year in the metro area, which is the highest number of starts since 2006.
“The anticipated increase in construction starts in 2013 will make a dent in the undersupply of condos in the market, especially in the District,” noted Rich. “Over the next three years, we expect for supply and demand to be in balance in the District, while in suburban jurisdictions we expect there will still be an undersupply.”
About 50 percent of the new units are planned for the District, 40 percent in Northern Virginia and the remaining 10 percent in Maryland. Major projects that could begin construction this year in DC include the Hine School redevelopment, with118 units, and Parcel 4 at The Wharf, with 134.
Here is an infographic that gives a good sense of the current inventory-to-sales ratio for new condo projects in the region:
Courtesy of Delta Associates. Click to enlarge.
This article originally published at http://dc.urbanturf.com/articles/blog/increase_in_dcs_condo_supply_should_bring_supply_and_demand_into_balance_in/7322
Most Popular... This Week • Last 30 Days • Ever
DC's homebuyer assistance programs can be a bit complex. This edition of First-Timer ... read »
Just a month after setting a new high in March, the value of a house in DC skyrockete... read »
The National Capital Planning Commission will consider approval of the final master p... read »
A look around DC to see where home sellers are dropping their prices.... read »
The new five-level residential project is planned for the buildings at 1365-1375 H St... 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 »
The most detailed rendering yet has been unveiled for the 310-unit redevelopment of t... 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