What's Hot: The 4 Projects in the Works (Or on Hold) Near DC's Starburst Intersection | This Week's Find: Fit For Art in the Palisades
The DC Rental Affordability Mismatch
DC Policy Center's latest rental report builds on prior analysis of the city's mismatched housing market.
The report highlights how the scarcity of rentals for households at various income levels creates pressure throughout the rental market, as households at both the lowest and highest ends of the income spectrum face a supply shortage.
For example, the 40,200 renter households in DC that would need an apartment renting for $750 or less in order to pay an affordable (30% of income) rate for housing are competing for fewer than 800 units in apartment buildings. However, there are an additional 12,700 units at this rental rate on the shadow rental market (loosely-regulated condos and houses), most of which are in Wards 5, 7, and 8.
story continues belowloading...
story continues above
At the other end of the spectrum, 41,100 city households could easily pay more than $2,700 per month for rent, although it is unclear the extent to which those households would actually opt to do so. The market provides just under 15,500 units in apartment buildings renting in this range, 4,700 of which are rent-controlled. Another 17,000 units rent for this price on the shadow market, most of which are in Wards 2, 3, and 6.
High competition for the most affordable units and limited options for the most expensive units has the effect of creating pressure on the rental market for the 43,000 households in the middle. Put another way, the approximately 71,400 one- and two-person households that cannot afford the median rent on the 75,730 studio and one-bedroom rental apartments on the market are competing with the 58,300 one- and two-person households that can.
Meanwhile, the variation in rental rates around DC restricts households at certain income brackets to certain areas, even when rent-controlled units are factored in. In Ward 2, for example, a household would need to earn at least the area median income (AMI) to afford the typical two- or three-bedroom rent-controlled unit, or to afford a unit of any size not subject to rent control. Wards 7 and 8 are the only in the city where a household earning up to 60% of AMI can afford the typical unit that isn't subject to rent control.
*AMI estimates based on appropriate match between unit and household size; eg. studios assume one-person households, three-bedrooms assume four-person households, etc.
See other articles related to: affordability, affordable housing distribution, dc policy center, dcpc, rent affordability
This article originally published at https://dc.urbanturf.com/articles/blog/the-dc-rental-affordability-mismatch/16671.
Most Popular... This Week • Last 30 Days • Ever
Our guide for amateur landlords who don't really know what they're doing.... read »
The Massachusetts Avenue Heights home was previously owned by the former chief execut... read »
A large new apartment and townhouse project has been pitched for the growing pipeline... read »
On Friday, Mayor Muriel Bowser and the Office of the Deputy Mayor for Planning and Ec... read »
In this week's Under Contract, we highlight two homes that found buyers just shortly ... read »
Virginia's homebuyer assistance programs can seem complex. This edition of First-Time... read »
The residential projects that have sprouted up on the Maryland and DC sides of the Fr... read »
With a groundbreaking ceremony on Wednesday, the redevelopment of the Georgetown Wes... read »
The immaculately kept 100-year-old house features six bedrooms and four-and-a-half ba... read »
Ten years later, plans to construct nearly 150 townhomes at DC's most hotly debated d... 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 »
- The Essential Guide to Being an Amateur Landlord in DC
- Washington Spirit Owner Michele Kang Lists DC Home for $14.5 Million
- A Two-Phase, 370-Unit Development Pitched For Columbia Pike Gas Station Site
- Apartments, A Plaza + Dave Chapelle: The Future Plans for 14th and U
- Under Contract: That Didn't Take Long
- First-Timer Primer: Virginia's Home Buyer Assistance Programs
- Mall Conversions, Trader Joes? The 1,500 Units in the Friendship Heights Pipeline
- The Four Seasons Private Residences in Georgetown Break Ground
- Now Selling: A 16th Street Heights Victorian on an Island of Its Own
- Reservoir District: 146 Townhomes Planned at McMillan Site Look For Final Design Approval
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