Market Report
Washington, D.C. Multifamily Market Report
1Q 2026
Class C-Oriented Submarkets Well-Positioned;
Private
Owners Welcome Advantageous New Rules
Working-class renter demand holding fast. The metro’s job losses last year weighed on leasing, but not enough to fully reverse vacancy rate reductions from 2024. With job losses mostly confined to white-collar roles and steadier hiring in hospitality and construction, Class C properties may maintain performance, despite leading class cuts in vacancy declines last year. Separately, a handful of areas may benefit from acute supply pullbacks. In the Navy Yard-Capitol Hill South submarket last year, new supply pushed the vacancy rate into the 6 percent band. A nearly blank slate due in 2026, however, will give existing properties a reprieve. The Hyattsville-Riverdale area and Bethesda-Chevy Chase will also see this dynamic, though at a smaller scale. This should help Class A and B properties sustain occupancy levels even as the metro navigates ongoing headwinds.
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