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DC’s New Condo Supply Will Take 3 Years to Balance Out

  • September 18, 2013

by Shilpi Paul

DC's New Condo Supply Will Take 3 Years to Balance Out: Figure 1
A rendering of The Montrose, a new condo project for Georgetown. Courtesy of Capital Pixel.

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:

DC's New Condo Supply Will Take 3 Years to Balance Out: Figure 2
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

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