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Market Report

Washington, D.C. Multifamily Market Report

2Q 2023

Long-Term Rental Demand Drivers Instill Developer
Confidence in Washington, D.C.’s Apartment Market

Recalibration period nearing an end. After vacancy fell to a 20-year low in March 2022, elevated inflation weakened the rate of household formation, resulting in rising availability over the past four quarters ending in March. However, the rate of increase has slowed as positive net absorption returned in the first quarter of 2023, indicating vacancy may soon hit an inflection point. Additionally, economic tailwinds are emerging, which may provide a boost to local apartment demand. United Airlines is planning a major expansion at Dulles International Airport, with the firm expected to create more than 1,000 new jobs in 2023. The FBI is also considering Greenbelt, Landover and Springfield as potential destinations for its new headquarters. The decision could provide a significant benefit to any of these suburban renter pools, as the Bureau intends to have 7,500 of its employees operating out of the new building.
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