Rents Are Falling In Supply-Heavy Capitol Riverfront And NoMa, But Growing Elsewhere
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DC had the fifth-highest rent in the nation in March, according to Zumper's national rent report, but the median cost of a one-bedroom in the District dropped 7% from March 2016. While some DC neighborhoods experienced rent growth, comparing the report to last year's shows that rent prices in neighborhoods with large amounts of multifamily development, such as Capitol Riverfront and NoMa, have dropped.
Where Rent Is Falling
Capitol Riverfront: The waterfront neighborhood in Southeast DC is in the midst of a massive multifamily boom. The staggering number of deliveries, including a citywide high of 1,843 rental units coming this year, is clearly having an impact on rents. The median rent in the neighborhood this March is $1,990, down from $2,220 in March 2016. In Q3 of this year, WC Smith's Whole Foods-anchored 336-unit mixed-use project at 800 New Jersey Ave. SE will deliver. A potential rent premium from Whole Foods could help offset the downward pressure from the massive number of units delivering this year.
Georgetown: One-bedroom rents in Georgetown, while tied with Shaw/Logan Circle for the highest in the city, seem to be on a downward trend. The neighborhood averaged $2,500 this month, down from $2,700 in March 2016. Georgetown does not have much rental product coming onto the market, but it does have a condo project, new retail and a hotel redevelopment in the pipeline. Residents are also still pushing for a gondola to connect Georgetown to Rosslyn, despite opposition from Arlington County.
NoMa/H Street: Another neighborhood with several rental projects delivering this year, NoMa, Union Market and the H Street corridor are also experiencing a dip in rents. One-bedrooms in the neighborhood averaged $2K this month, down from $2,170. Developers will deliver more than 1,000 new units in the area this year, which has some thinking it is time to switch to condos. H Street also just welcomed its first Whole Foods, and a Trader Joe's will open near Union Market later this year, two anchors that could create rent premiums for the units nearby.
Where Rent Is Rising
U Street/Cardozo: One-bedroom rents in the buzzing U Street area have risen $160 year-over-year to a median of $2,260 this month. But rents seem to have peaked in September, when one-bedrooms averaged $2,400, and may now be on a downward trend. The JBG Cos. is working on two projects in the neighborhood, Atlantic Plumbing Parcel C, and a Whole Foods-anchored development with MRP Realty at 965 Florida Ave. It also recently delivered apartment buildings in North End Shaw and at 13th and U streets.
Kingman Park: The neighborhood just north of the RFK Stadium campus, Kingman Park has seen rents rise a significant amount in the last year. The median one-bedroom this month goes for $1,550, while in March 2016 it was just $1,300. That could continue to rise as the RFK Campus short-term plan takes shape, which could include a proposed bridge connecting Kingman Park to River Terrace across the Anacostia River.
Michigan Park: Rents have begun to rise in Michigan Park, the Northeast DC neighborhood just outside of Brookland and Fort Totten. One-bedrooms in Michigan Park averaged $1,450 this month, up from $1,250 in March 2016. The neighborhood is pretty quiet from a development perspective, but at least one developer is betting on the neighborhood. EYA has been working with St. Joseph's Seminary to add 90 row houses to the northern section of the seminary's eight-acre Michigan Park property.