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Demand Momentum Makes Rapid Improvement as
Northern Virginia Performance Stands Out
Strong demand amid peaking construction. The supply and demand story of the D.C. multifamily market has improved quickly. From 2021 to 2023, deliveries exceeded net absorption three-to-one, but in the first two quarters of 2024, net absorption slightly exceeded completions. By the end of the year, the two metrics are forecasted to be neck-in-neck. This bodes well for the future of rent growth in the metro as well as for near-term vacancy, which is expected to come in at or below last year’s rate of 5.3 percent. Supporting the increase in demand, the first two quarters of 2024 posted accelerating job gains, signaling that hiring will likely outpace the national average by yearend. These trends are benefiting all three major areas of the market. New jobs in the District support housing demand nearby and in the Maryland suburbs, while Northern Virginia continues to appeal to both D.C. commuters and those working in the area.