WASHINGTON, DC-A surge in apartment construction is causing Washington, DC to be one of the few major cities to likely have a decrease in apartment rental rates this year.
Delta Associates reports that the Washington, DC metro region, which includes the suburbs of Maryland and Virginia, will experience rental rate declines of as much as 2% this year, joining Detroit as the only major cities to experience rental rate decreases.
The Alexandria, VA-based research firm adds that rents in the District region will fall even further in 2014, according to Bloomberg News.
“Everyone around the country is really watching D.C. because it's on the front wave of all these markets—all the supply is coming back,” says Jay Denton, vice president of research at multifamily research firm Axiometrics Inc. He adds that investors want to see if new supply coming on line will meet the demand for rental apartments. See story at Bloomberg News.
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