Skip to main content

Market Report

Washington, D.C. Multifamily Market Report

3Q 2023

Renter Demand Rebounds in the Nation’s Capital,
But Still Overshadowed by a Historic Supply Wave

Vacancy contracts in second quarter. After falling to a more than two-decade low in early 2022, renter demand has improved significantly through the first half of this year. Nearly 5,000 units were taken off the market on a net basis during the first six months of 2023, which helped bring annual net absorption back to positive territory. Metro vacancy also experienced a quarter-over-quarter decline from April to June; however, the rate was still 100 basis points above the 2019 level. Although leasing activity is recovering, the robust construction pipeline remains a headwind to rental availability. As of August, there were more than 37,000 units underway, accounting for 5.5 percent of total inventory. Areas facing heavy supply pressure include Bethesda-Chevy Chase, Central D.C., Navy Yard-Capitol South, North Arlington and Northeast D.C., as each of these submarkets are slated to gain over 2,500 units in the next two years.
TO READ THE FULL ARTICLE
MM Texture Background