D.C. Rents Could Drop By Year’s End

D.C. is an expensive city for renters, but some relief could be in sight. Average rents are expected to drop by the end of 2012, thanks to an increase in the number of new apartments. About 8,000 new units will come on the market this year, which means supply might outpace demand. Low rents won’t last forever, though; rents will eventually increase once all those construction projects are finished and people start living in the new apartments, UrbanTurf reports.

As we reported in January, the rent increases that have made DC-area residents shudder in recent years began to slow down in late 2011 and that trend continued in the first quarter of 2012. Rents for Class A and B apartments rose 2.1 percent for the 12-month period ending in March, and Class A rents rose by just 2.3 percent, compared to an increase of 6.9 percent during the preceding 12 months.

The vacancy rate (3.8 percent) is unchanged from what was reported for the 4th quarter of 2011. This rate is the second lowest for any metro area in the country (behind only the Big Apple), and is “powered by the extremely tight Class B market at 2.2% vacant, made up of older more modestly priced units” according to the report. But that will change in the coming year.

Read more at: dc.urbanturf.com