D.C. Multifamily Sees Capital Gains
Coming off a hot 2021 for multifamily performance, Greater Washington, D.C., is once again picking up steam after a seasonal slowdown. Rent growth accelerated during the last quarter, with rates up 0.8% on a trailing three-month basis, just 20 basis points below the national figure. On a year-over-year basis, D.C. rates were up 10.0% as of May, putting the city in the lower third among major U.S. metros but still way ahead of pre-pandemic levels.
While lagging the national rate of economic recovery, metro D.C. still added 114,500 jobs in the 12 months ending in March, with only one sector—financial activities—losing positions (-3,200). The overall additions accounted for a 3.8% rise in employment in one year, trailing the U.S. figure by 90 basis points. Although unemployment was at a tight 3.0% as of April, the MSA still has 130,000 fewer people employed than it did at the beginning of 2020.
While the area is not immune to economic turbulence, Greater D.C. remains a high demand-high supply market. Case in point, the metro had 37,345 units under construction as of May, representing the country’s fourth-largest pipeline, even as occupancy improved. Meanwhile, $1.9 billion in rental assets traded across the metro in the first five months of the year, for an average price per unit of $289,545. Per-unit prices have been on the rise for five consecutive years.
Read the full Matrix Multifamily Washington DC Report-July 2022