Record-Setting Pace Continues for DC-Area Apartments
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Over 14k Class-A units were absorbed during the past year, more than double the 10-year average in the region. The volume of deliveries over the next 12 months should help close the gap with an expected increase of 42% over the previous 12-month period. Still, the pace at which new apartments are renting up is nothing short of jaw-dropping for market watchers. We've simply never seen demand like this.
The areas of DC proper and Northern Virginia have seen significant increases, rising 82% and 37%, respectively. Deliveries were outpaced by over 800 units according to data from Delta Associates.
The record-setting numbers and the influx of renters into new units have not translated into rent increases. Class-A apartment rents increased only 0.5% over the past year as supply continues to generally match demand. Developers like Tom Bozzuto have said they think rents will decrease in the near-term as more and more apartments deliver. [UT]