Vacancies and rents both rose in the DC area’s Class B apartment market in the first quarter of 2014, according to a recent report. The climb in both areas can be attributed to regional differences; rents in suburban Maryland rose during the period, while vacancies grew in both northern Virginia and DC.
The report, issued by real estate research firm Delta Associates, looks at year-over-year changes in the Class B market. Class A apartments are typically large buildings built after 1991, with amenities like gyms, pools and the occasional rooftop dog park (UrbanTurf reported on the changes in the Class A market on Monday). Class B buildings are generally older buildings that have been renovated or have more limited amenities. Delta’s analysis doesn’t include privately rented homes.
Overall, the Class B vacancy rate rose from 4.4 percent to 5.1 percent, and rents in the region increased, but only very slightly. The changes make more sense when you look at the breakdown by region. Rents in suburban Maryland are up 2.4 percent, while vacancy is down 4.6 percent. Opposite yet less pronounced trends occurred in both northern Virginia, where rents dropped by 0.8 percent and vacancy rose to 5.4 percent, and DC proper, where rents showed no change and vacancy rose to 4.9 percent.
Here’s a chart with more details:
Courtesy of Delta Associates. Click to enlarge.
Here’s a look at average rents for high-rise, Class B apartments in certain Delta-defined submarkets:
As 2014 continues, Delta Associates predicted that vacancy among Class B apartments will continue to rise as more Class A apartments come on the market. That should cause rents to lower accordingly. On the other hand, the researchers predict that the increase of lower-wage jobs coming to the DC metro area should provide demand for Class B apartments.
This article originally published at http://dc.urbanturf.com/articles/blog/vacancies_and_rents_both_rise_among_dc_areas_class_b_apartments_thanks_to_r/8341
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