What's Hot: Whole Foods at Walter Reed to Open at End of June | Will This Be the DC Area's First $60 Million House?
Was 2021 The Strongest Year Ever for the DC Apartment Market?
Several signs point to DC having its strongest rental market on record in 2021.
Apartment absorption increased by a whopping 654% in DC proper last year, according to the latest quarterly report from Delta Associates, with more than 8,000 apartments leased in the city. These absorptions not only accounted for almost half of all apartments absorbed in the DC metro area in 2021, but it was also the first year that over 8,000 units were absorbed in the city.
story continues belowloading...
story continues above
Consequently, rents rose by 19% in the city last year, although the average rent remains at 97% of pre-pandemic levels. Metrowide, Class A apartment rents were up by 15% last year, compared to a 10.2% drop in 2020.
In Northern Virginia, absorption rose by 68% last year, led by high-rises in the Rosslyn/Ballston Corridor. In the fourth quarter of 2021, average rents in Northern Virginia were at 102.3% of rent levels in March 2020. Meanwhile, annual absorption rose by 129% in Suburban Maryland, led by high-rises in Bethesda (617 units absorbed, 1,006 units delivered). Fourth quarter rents in the submarket were at 104% of March 2020 levels.
Rent growth was the highest areawide last year in Central DC (Penn Quarter, Logan Circle),where rents rose almost 30% year-over-year; the Columbia Heights/Shaw submarket came in second with rents rising 18%. The Capitol Hill/Capitol Riverfront/Southwest submarket led both the city and the area in absorption, its 3,936 leased units exceeding the total absorption in all of Suburban Maryland. The NoMa/H Street submarket led the region in the number of units delivered last year (1,945), although apartment deliveries were down by 21% across DC.
Here is a quick snapshot of average rents for high-rise Class A apartments in DC area sub-markets, as defined by Delta:
- Alexandria: $2,213 per month
- Bethesda: $2,792 per month
- Capitol Hill/Capitol Riverfront: $2,570 per month
- Central (Penn Quarter, Logan Circle, Dupont Circle, etc.): $2,923 per month
- Columbia Heights/Shaw: $2,619 per month
- Crystal City/Pentagon City: $2,452 per month
- Hyattsville/College Park: $1,962 per month
- NoMa/H Street: $2,341 per month
- Northeast: $2,075 per month
- Rosslyn-Ballston Corridor: $2,580 per month
- Silver Spring/Wheaton: $2,038 per month
- Upper Northwest: $2,989 per month
Note: The rents are an average of studios, one and two-bedroom rental rates at Class A high-rise buildings in the DC area in Q4 2021.
Class A apartments are typically large buildings built after 1991, with full amenity packages.
See other articles related to: class a apartments, dc apartments, dc area rental market, dc rental market, delta associates
This article originally published at https://dc.urbanturf.com/articles/blog/was-2021-the-strongest-year-ever-for-the-dc-apartment-market/19177.
Most Popular... This Week • Last 30 Days • Ever
A look at the larger residential developments in the works from Cardozo to Mount Vern... read »
The Heights, a ten-stall food hall that is taking over the spaces formerly occupied b... read »
A piece of legislation quietly introduced in the House of Representatives earlier thi... read »
Whole Foods announced yesterday that the 47,000 square foot store will open on June 2... read »
Developer EYA and the Washington Metropolitan Area Transit Authority will go before D... 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 23,600 square-foot mansion just hit the market, and would set a record if it fetc... read »
The immaculately kept 100-year-old house features six bedrooms and four-and-a-half ba... 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 9 Developments and 1,250 Units in the Works For Shaw
- Friendship Heights Food Hall Could Open This Month
- Will This Proposed Bill Increase the Number of Homes For Sale?
- Whole Foods at Walter Reed to Open at End of June
- 435-Unit Development Planned For Takoma Metro Station Looks For Historic Approval
- 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
- DC's Blaine Mansion Lists For $30 Million, A Potentially Record-Setting Price in the City
- Now Selling: A 16th Street Heights Victorian on an Island of Its Own
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