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Rents Rise in NoMa and H Street, Fall on Capitol Hill

by UrbanTurf Staff

Rents Rise in NoMa and H Street, Fall on Capitol Hill: Figure 1
The Apartments at CityCenter

Class A apartment rents in the region fell 0.4 percent in the first quarter of 2014 versus the previous year, according to a report out late last week. But in a few pockets, rents rose even as new product continued to hit the market.

The Delta Associates report analyzing the regional apartment market in the first quarter of 2014 states that rents for Class A apartments in sub-markets including NoMa/H Street (+4.6 percent) and Prince William County (+8.1 percent) increased over the last 12 months. However, in the three jurisdictions of DC, Suburban Maryland and Northern Virginia, rents for new apartments fell, and in some areas the drop was pronounced. For example, in South Arlington, rents fell just over 6 percent, while on Capitol Hill and Capitol Riverfront rents dropped 2.6 percent

From Delta Associates:

Washington apartment market metrics continue to be affected by a rising tide of supply. However, due to record setting absorption, the Class A stabilized vacancy rate improved to 4.5%, down from March 2013 when it stood at 4.9%. The already oversized 36-month development pipeline grew to the highest level we have ever recorded in the Washington region, 40,120 units at March 2014.

Here is a quick snapshot of average rents for Class A apartments in DC area sub-markets, as defined by Delta:

  • Central (Penn Quarter, Logan Circle, Dupont Circle, etc.): $2,812 a month
  • Upper Northwest: $2,654 a month
  • Columbia Heights/Shaw: $2,599 a month
  • NoMa/H Street: $2,358 a month
  • Capitol Riverfront: $2,222 a month
  • Rosslyn-Ballston Corridor: $2,382 a month
  • South Arlington: $2,066 a month
  • Bethesda: $2,574 a month

Note: The rents are an average of studios, one and two-bedroom rental rates at new buildings in the DC area.

The report released last week looked at Class A apartment projects. Later this week, UrbanTurf will take a closer look at the state of the Class B market.

Definitions:

  • 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.

See other articles related to: renting in dc, rental incentives, delta associates

This article originally published at https://dc.urbanturf.com/articles/blog/rents_rise_in_noma_h_street_fall_on_the_hill/8322

4 Comments

  1. Alex said at 8:26 pm on Monday April 7, 2014:
    For your Class A apartment definition - Is 1991 significant because that is when Fair Housing went into effect, or it just because it is newer?
  1. The Editors said at 8:34 pm on Monday April 7, 2014:
    Alex, The Class A definition comes from the Delta report. We will check and find out if its significance relates to Fair Housing. The Editors
  1. jeffrey said at 9:25 pm on Monday April 7, 2014:
    Some more details on the unit type rents would be great. That is a lot of new inventory, should result in some incentives and pressure on rents.
  1. APtHunter said at 2:55 pm on Tuesday April 8, 2014:
    my sense is that no one is cutting nominal rents, but one month free incentives are becoming more common again - and I even saw an add for a building with a one and a half month free incentive. Its definitely worth it to ask, if they don't advertise it.

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