DC Overtakes NoVA In Class A MF Absorption
Delta Associates’ report also noted that there is a strong sense of optimism in the Washington metro area that it will land Amazon’s headquarters.
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WASHINGTON, DC–The District has overtaken Northern Virginia as the market leader in Class A apartment absorption and oncoming supply, according to research presented by Delta Associates for its 22nd annual Washington/Baltimore Multifamily Market Overview and Awards for Excellence. In the 12-month period ending September 2018, 9,052 Class A apartment units were absorbed in the Washington metro area, and 40% of these units were in the District.
“Washington is in its eighth year of below-average rent growth,” said Delta Associates President William Rich. “However, there appears to be some light at the end of the tunnel: Class A apartment rents increased metro-wide by 1.4% from September 2017 to September 2018, the strongest growth experienced since 2012.”
In the Baltimore metro area, absorption of Class A apartments has averaged about 2,000 units per year over the past 10 years. In the 12-month period ending September 2018, absorption reached its highest level on record, with 3,586 units. Of that total, half of the absorption was in Baltimore City.
The report also noted that there is a strong sense of optimism in the Washington metro area that it will land Amazon’s headquarters. Three of the 10 finalist cities left in the running for Amazon HQ2 are in the region and speculation reached a fevered pitch last month when Jeff Bezos and Amazon’s Board of Directors held a board meeting in the District.
“If any of these three jurisdictions is selected as the home of Amazon HQ2, the impact will be felt throughout the region, with up to 8 million square of development potential and 50,000 new high-paying jobs,” Rich said.