Research Presented for 23rd Annual Delta Associates Multifamily Market Overview
October 29, 2019
Washington – Washington, D.C., continues to be the market leader in Class A apartment absorption and oncoming supply. In the 12-month period ending September 2019, 9,714 Class A apartment units were absorbed in the Washington metro area, and 35% of these units were in the District, according to research presented by Delta Associates at the 23rd Annual Delta Associates Washington/Baltimore Multifamily Market Overview and Awards for Excellence.
The event also included awards for apartment and condominium communities throughout Washington, D.C., suburban Maryland, Northern Virginia and Baltimore for factors such as lease-up, sales pace, design and innovation. The market overview report and list of apartment and condominium award winners are available for download at www.multifamilydc.com.
“In the Washington metro, there are over 90 Census tracts designated as Opportunity Zones and apartment development is starting to ramp up in these areas,” said William Rich, President of Delta Associates. “As of September, more than 5,600 market-rate units under construction or in lease-up in the area are in Opportunity Zones, concentrated in the District, Prince George’s County, Montgomery County and Prince William County.”
The Washington condominium market remains supply-constrained, although there has been an upswing in new product coming online. Despite the lack of supply, price growth is expected to remain in the low-single digits in the short term.
In the Baltimore metro, absorption of Class A apartments has averaged about 2,100 units per year over the past 10 years. In the 12-month period ending September 2019, absorption reached nearly 2,400 units. Of that total, half of the absorption was in Baltimore City.
While wage growth has strengthened and major stock market indices are up significantly over the year, the national economy is showing some signs of softening after almost a decade of expansion.
“However, on the local front, Arlington won out over the other finalist cities for Amazon HQ2 in November 2018. Since then, Amazon has slowly started hiring and plans are advancing for their headquarters campus,” said Rich. “Amazon’s impact on National Landing and the region will be long-lasting, helping to diversify the job base, generate demand for commercial real estate and housing and additional spin-off benefits will result in more companies choosing to locate in Washington.”
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