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One Million New Jobs Means DC Needs More Housing

by Shilpi Paul

One Million New Jobs Means DC Needs More Housing: Figure 1

One million new jobs will be created in the DC area over the next 20 years, according to a study released on Thursday by George Mason University’s Center for Regional Analysis, which will result in some serious traffic congestion and the need for more housing.

The Washington Examiner highlighted the need to provide housing for all of these new workers to avoid a commuting nightmare.

“We need to think about housing as part of a larger economic development strategy,” said Lisa Sturtevant, a co-author of the report. “Many localities are proactive in seeking big companies to come to their county, such as SAIC, Hilton, etc. But part of their strategy needs to be that the workers who take those jobs need somewhere to live.” If communities don’t end up supplying housing where people work, the result could be catastrophic for the region, with $68 billion lost to the region’s economy and 700,000 commuters on the road every day, up from the current 230,000.

One Million New Jobs Means DC Needs More Housing: Figure 2
Data from George Mason University’s report

The report, which can be found here, estimates that the region as a whole will need to build as many as 731,000 new units to house the workers — 211,000 units in suburban Maryland, 392,000 in Northern Virginia and 122,000 in the District.

From the report:

Supplying this amount of housing will require the construction of about 38,000 net new housing units each year region-wide, an annual pace of construction never before seen in the region. Based on the housing need forecasts, more than two-thirds of owner occupied units need to be priced below $400,000. More than half of new renters will need housing with rents less than $1,250 a month.

The report was released on the same day that news came that the economy was growing at its fastest rate in a year.

See other articles related to: housing reports, housing inventory, home buying

This article originally published at http://dc.urbanturf.com/articles/blog/one_million_jobs_coming_to_the_area/4466

6 Comments

  1. Jason Trotman said at 1:46 am on Saturday October 29, 2011:
    This blog post reinforces how job market stability can affect the housing market. Great post!
  1. jag said at 5:11 pm on Monday October 31, 2011:
    DC Buyer - (almost) every new development these days is "luxury," which certainly won't be the case in the longer term. Besides, we're talking about the whole DC area (which you probably misread as just talking about DC). Below 400K in and around DC is pretty easy (if foregoing all the "luxury" addons), outside of select neighborhoods.
  1. xmal said at 8:02 pm on Friday October 28, 2011:
    Very interesting---much more sanguine than the more recent short-term reports (http://online.wsj.com/article/SB10001424052970204450804576625353148476150.html). Any explanation what is assumed to fuel this 1.4% jobs growth rate, beyond just US population growth (1%)?
  1. DC Buyer said at 9:47 pm on Saturday October 29, 2011:
    "more than two-thirds of owner occupied units need to be priced below $400,000. More than half of new renters will need housing with rents less than $1,250 a month."--how could this be possible? Developers are already losing money with new constructions (except for a few with strong political connection who can buy land cheap) in today's market, which are, on average, priced well above $400.
  1. Kevon said at 10:47 pm on Tuesday November 1, 2011:
    Good because I need a job ::sits back on couch to wait 20 years...pass the salsa::
  1. Shantee said at 8:49 pm on Thursday November 3, 2011:
    Very promising. Even Ocotober last year, unemployment in DC had been down since the previous year. I think the thing to consider is how many of these opportunities are actual fulltime opportunities and how many may be contracting opportunities over the next few years. The MANY people making their way into the area and with the troops coming home, our market is going to get a boost...

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