DC Metro ranks 9th for new apartment construction this year

The vast majority of new-build apartments in the DC area are Class A, which means they’re amenity-heavy and expensive to rent.

The DC area ranks 9th among US metropolitan areas for the number of new apartments that will be completed in 2022.

RentCafe Estimates more than 14,200 new apartments have been completed in the DC area this year, or will be by the end of the year.

This is notable because the region is one of the few in the top 10 to be outside of the Sun Belt, where populations are growing much faster, primarily in Florida, Texas, and Arizona.

Construction of new apartments is taking place across the region, with the district leading the way. DC has nearly 4,600 new apartments arriving this year, half of which have already been delivered.

The district is followed by Alexandria and Arlington in Virginia. This growth is largely fueled by demand for Amazon headquarters housing.

Much of the construction of new apartments this year is taking place along the underground’s Silver Line.

“One of the things we’re seeing becoming more and more prevalent in the work-from-home type of environment, until people understand this hybrid model, is that transit-first development has become much more important again,” said Doug Ressler, head of business intelligence at Yardi Matrix, parent company of RentCafe.

The vast majority of new-build apartments in the DC area are Class A, which means they’re amenity-heavy and expensive to rent.

“It does not exclude the fact that affordable pricing is done to some extent. And also, you see a lot of adaptive reuse. In fact, DC is the poster child for adaptive reuse in terms of taking existing stock with good bones, like an office, and converting them into housing,” Ressler said.

Office-to-residence conversions tend to come to market with cheaper rents than newly constructed Class A buildings.

Even with a strong pipeline, new apartment deliveries in the DC metro in 2022 are expected to be 14% lower than in 2021 and lower than the average annual number of deliveries over the past five years.

Across the country, 420,000 new apartments will be delivered this year. New residential rental contrition over the past two years is at its highest level in 50 years.

RentCafe National Report can be found online.

Below is a list of the leaders in new apartment construction in the Greater Washington area this year:

(Courtesy of RentCafe)

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