Study: Apartment Rent Growing Fastest in DC

WASHINGTON, DC—The District is among just four major cities in the United States where more than 50% of its population rents.

A study conducted by New York University's Furman Center and commissioned by Capital One Financial Corp. also found that Washington DC outpaced the rest of the nation by posting a 21% increase in inflation-adjusted median gross rent from the period 2006 to 2013.

The NYU Furman Center/Capital One National Affordable Rental Housing Landscape study examined rental housing affordability trends in the central cities of the nation's largest metropolitan areas (New York, Los Angeles, Chicago, Houston, Philadelphia, Dallas, San Francisco, Washington, DC, Boston, Atlanta and Miami) from 2006 to 2013.

The study reported that nine of the 11 largest U.S. cities saw falling vacancy rates and rising rents, which hurt lower- and middle-income renters. With the exception of Dallas and Houston, the average renter in each metropolitan area could not afford the majority of recently available rental units in their city.

In Washington, DC and Boston, which were considered the most affordable markets in the study, low-income renters could afford no more than 11% of recently available units.

“Housing is a significant expense. So, when faced with rapidly rising rents, many households have less discretionary income for other necessities like food, utilities, and transportation,” says Ingrid Gould Ellen, faculty director of the NYU Furman Center. “This study shows that in recent years, many low- and even moderate-income renters are finding a dwindling number of affordable homes in major U.S. cities.”