Washington, D.C., Multifamily Report – November 2023

The rental sector continued to decelerate at the end of 2023.

Washington, D.C. rent evolution, click to enlarge

Washington, D.C. rent evolution, click to enlarge

Washington, D.C.’s multifamily market displayed steady fundamentals, despite ongoing market volatility. Rents plateaued on a trailing three-month basis through September, reaching $2,121, while national rates moved into negative territory, at -0.1 percent. The Renter-by-Necessity segment saw some limited growth, while the upscale segment saw a 0.1 percent contraction. In average occupancy rates in stabilized properties, the Lifestyle segment saw a 50-basis-point increase year-over-year, up to 95.7 percent.

Washington, D.C. sales volume and number of properties sold, click to enlarge

Washington, D.C. sales volume and number of properties sold, click to enlarge

The metro added 59,900 jobs in the 12 months ending in July, up 2.0 percent, but 60 basis points lower than the national rate. As of August, the unemployment rate clocked in at 5.0 percent, according to preliminary data from the Bureau of Labor Statistics. Education and health services added 21,700 positions, the largest addition to the workforce across all sectors. Employment rates are set to increase, with a $500 million industrial facility coming to the suburbs. National Capital Business Park will encompass 3.5 million square feet and is taking shape along the Interstate 95 distribution corridor.

Washington. D.C. Photo by DenisTangneyJr/iStockphoto.com

Washington. D.C. Photo by DenisTangneyJr/iStockphoto.com

Developers had 33,109 units under construction as of September. Of the projects underway, 6,800 units broke ground this year, a 42.8 percent decrease compared to the same interval in 2022. Investment activity saw a significant slowdown. Since the beginning of the year, $1.6 billion in multifamily transactions have traded.

Read the full Yardi Matrix report.

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