Washington, D.C. Multifamily Market Report

Wage growth underpins rental demand. Over the past year, the median household income rose by 1.7 percent in the nation's capital, more than double the U.S. pace of increase. The high concentration of Fortune 500 companies across the Washington, D.C. metro led to above-average wage growth, which also benefited resident retention and spurred net in-migration. This has helped fuel demand for apartments, with vacancy at the midway point of 2022 down 130 basis points from the recording at the same time last year. Submarkets like Navy Yard-Capitol South, Central D.C. and Bethesda-Chevy Chase have experienced significant momentum as of late, with availability falling by at least 300 basis points in each of these locales during the trailing 12-month period ending in June.