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Market Report

Washington, D.C. Multifamily
Market Report

2024 Investment Forecast

Rents Recalibrate Between Tri-State Locations,
Shaping Apartment Demand

The District offers favorable opportunity cost for most renters. Among major primary metros anticipating stock growth of over 2 percent this year, Washington, D.C. stands out as the sole market poised to record a decline in vacancy. Heightened demand for rentals in the District will play a crucial role in supporting this dynamic, after the area’s Class A vacancy rate fell considerably in 2023, with its Class B rate holding steady. Recent rent movement, which was largely responsible for this performance, should continue to attract renters to the area. In 2019, the average effective rent for top-tier properties here was $100 per month higher than Northern Virginia’s mean. However, the gap between the two regions is now marginal after Class A rent in the District rose just 8 percent over the last four years. Simultaneously, the discount relative to southern Maryland has reached a near-record of $340. This interaction taking shape across the Tri-State area should steer more renters to apartments in the District. While the delivery of 11,000 units by 2025 may pose challenges to property metrics in the near term, increased concessions usage resulting from continued deliveries should sustain demand for new units across neighborhoods in the District. One of such is Navy Yard-Capitol South, which is expected to host the completion of 1,800 units this year.

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