Washington, D.C., Multifamily Market Report
Apartments Outside the District Better Positioned For Gains in the Near Term Amid Supply Pressure
Core D.C. neighborhoods face longer road to recovery. The closure of many offices, entertainment venues and other non-essential businesses drastically altered the lifestyles of District residents last year. Vacancy softened across all apartment classes inside D.C. by at least 350 basis points. Availability climbed the most in the District’s higher-cost residential areas as renters, out of either necessity or choice, looked for more affordable or less densely packed living spaces. While the ongoing vaccine rollout should bring more employees back to offices, restoring one advantage of urban living, upcoming supply growth will pose a near-term challenge in some neighborhoods. A combined 6,000 doors will open in the Navy Yard/Capitol South and Northeast D.C. submarkets this year, a 15 percent increase to local inventory.