Washington, D.C. Multifamily
Market Report

Sharp rent growth in D.C. core brings new development. The 3,200 units anticipated to open this year in the District will trail 2024’s tally of 5,800 rentals. Yet one submarket is experiencing accelerating completions: the Navy Yard-Capitol South area, where 1,000 more doors will open than in any other neighborhood in D.C. Developers may be pursuing these blocks’ enduring demand, which was strong enough to bring the local vacancy rate down 170 basis points last year despite inventory growing 5.5 percent. Proximity to government employers now brings positive and negative effects to leasing. As federal workforce cuts coincide with department consolidation and return-to-office plans, similarly well-positioned areas within the metro may experience mixed demand pressures.