Washington, D.C., Multifamily Market Report
Suburbs Return to Pre-Pandemic Footing;
Renter Demand in the District Also Rising
Renter demand drives recovery outside the core. The distribution of vaccines in the spring paved the way for businesses to reopen, facilitating hiring and household formation as well as lifting renter demand. This is especially true in northern Virginia and suburban Maryland. As of the second quarter, vacancy in both areas had recovered to within 10 basis points of the pre-2020 benchmark, while also recording year-over-year growth in average rent. Even with these gains, monthly rates continue to reside well below those inside the District, drawing renters priced out of the core. The prevalence of remote and hybrid office work have also lessened the burden of a long commute, allowing some households seeking larger spaces to relocate to the suburbs.