Washington, D.C., Multifamily Report – November 2022
While the market is cooling off, projects across the capital are pushing through.
The U.S. capital’s multifamily market continued to record solid numbers through the first three quarters of the year. Rent growth on a trailing three-month basis in the metro stood at 0.3 percent, 10 basis points over the moderating national rate. The overall average rent was $2,103, well outpacing the $1,718 U.S. figure.
The district’s employment market stood at 3.2 percent year-over-year, with the metro adding 75,000 jobs in the 12 months ending in July. Mirroring many other markets, job growth was driven by the recovering leisure and hospitality sector, which added 32,900 positions through the interval. D.C. local authorities are rolling out the district’s first public-private partnership through its DC Smart Street Lighting initiative. The $309 million project will replace existing public lighting with energy-efficient LED lights, as ongoing challenges generate the need for new technology in infrastructure.
Development activity in the district was strong, with 34,014 units underway and a total of 10,000 units added year-to-date through September. Despite elevated construction throughout the decade, the average occupancy rate in stabilized properties remained high, even rising 20 basis points, at 95.6 percent as of August. In investment, multifamily sales had another strong year, with $4.2 billion recorded through the same period. With D.C. being one of the largest multifamily markets in the nation, Yardi Matrix expects rent growth to close the year at around 7.3 percent.