The DC metro area has delivered almost 43,000 new apartment units between 2022 and 2023 and the apartment building boom is continuing this year, Yardi Matrix reports.
Overall, the metro area ranked sixth in the ation for new apartment deliveries in the past two years, and it is ninth for 2023.
Most of the construction is within the District, as well as Arlington and Alexandria, VA, Yardi Matrix says.
“One of the reasons for that is positive net-inbound migration,” Doug Ressler, senior analyst at yardi Matrix told WTOP. “The D.C. area has increased its population post-pandemic and is one of the few East Coast cities to do that.”
Most of the new construction isn’t inexpensive affordable housing — it is going for amenity-rich, high-end structures. Rents can reach $4,000 per month, with an average rental rate of $2,400.
However, Yardi Matrix sees a trend towards greater affordability.
“Primarily, the mix is high-end, but what we see is a trend now toward affordability, because what many developers see now is the growing urgency of the affordable market,” Ressler said.
New apartments in the D.C. metro are small, and they are getting smaller, Yardi Matrix says. The average size of a newly-delivered apartment has fallen to 745 sq. ft.
“For example in the Navy Yard, you’ll see about a 60% split between one-bedrooms and studios and 40% all other configurations. Now if you move out toward the suburbs, you’re going to see a little bit more of a split of 60% larger apartments because what you’re building for is millennials who have families and want a little bit more space,” Ressler said.
New apartment construction in the D.C. region is contributing to what has been one of the best several years for apartment construction nationwide on record, WTOP reported.