TRENDLINES: Housing Supply Still Hasn’t Caught Up With Demand

Ronald Regan Building and International Trade Center

WASHINGTON, DC—Concerns began emerging as far back as three years ago that the Washington DC area’s multifamily market might be entering a bubble phase. These concerns, as it turns out, have been widely, widely misplaced.

Despite the steady development of apartment buildings here, the asset class is still under served. At recent construction rates, the Washington metro is producing 13,000 fewer housing units per year than would be justified by job and household growth, according to Delta Associates. This, in turn, is driving appreciation and pricing many households out of the market — something that will be a key issue for the region in the coming years.