'Ungrouping' Will Drive Class A Apartment Absorption In DC

Delta President William Rich

WASHINGTON, DC–Ungrouping. It sounds like a word Gwyneth Paltrow might use to describe the breakup of a living arrangement among roommates or family members and in fact, that is exactly what it means in this particular context. Ungrouping will continue to drive annual absorption rates of Class A apartments in the Washington DC area as rents will likely stay below average and new supply will continue to flood the market, at least until 2018.

That is according to Delta Associates, which reports that, after dipping below the five-figure mark in the fourth quarter of 2016, annual absorption of Class A apartments reached over 10,000 units in the first quarter of 2017. Specifically, the Washington DC area recorded 10,381 Class A units absorbed during the 12 months ending March 2017.