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Yes, rents do respond to changes in supply and demand, like any other good.
Yet there are people who still reject this concept and resist the idea that new developments would not help. They reject the idea that the rental market is under the same constructs as other markets. It is pretty clear the development has helped. Thankfully there are other large developments in the pipeline, and if supply continues matching demand we will do okay going forward.
I swear to you, most of the new apartments on Georgia Ave have vacancies at least of 40 to 50%. Even Elevation has a sizeable vacancy rate. And they keep building newer and newer housing with condo rates of 300 to 400 k. its ridiculous
Interesting. I have a friend who lives in an older 1970s but still nice NW building that is managed by one of the big management companies. She got a great deal on her rent because she moved-in during the dead of winter, but she just went to renew her lease, and they are giving her no rent increase, so she can lock-in her current below-market rent for a 24-month lease.
I swear to you, most of the new apartments on Georgia Ave have vacancies at least of 40 to 50%. Even Elevation has a sizeable vacancy rate. And they keep building newer and newer housing with condo rates of 300 to 400 k. its ridiculous
I swear to you, most of the new apartments on Georgia Ave have vacancies at least of 40 to 50%. Even Elevation has a sizeable vacancy rate. And they keep building newer and newer housing with condo rates of 300 to 400 k. its ridiculous
It takes a while to lease up large apartment buildings - on the order of around nine months to one year after leasing officially begins. Elevation at Washington Gateway just started leasing 5 months ago and the building has 400 apartments. The Swift Petworth on Georgia Avenue has been open about 6 months now, and that building has 220 units.
With nearly 11,000 apartments currently under construction in DC and with nearly 7,000 apartments delivering in 2014 alone, the most apartment deliveries of any year in the last 15 years by a mile, it is a testament to the power of supply and demand in the apartment market.
Counting condos, single-family homes, and apartments, we have nearly 12,000 residential units under construction right now. This is a record-setting year for the residential market in DC.
Last edited by revitalizer; 12-14-2014 at 11:40 AM..
It should be noted, the condo buildings sell out very quickly. The vacancies are for apartment buildings, and as it was noted, it can take 9 months to a year to lease out an entire apartment building. Right now though for DC the time to lease out a new building after construction is completed is pegged at six months for many of these new buildings, unless the location is very hot, where it may be much shorter. If it seems like the market has to much supply, developers usually slow down construction of new buildings. The exception of course is major projects such as Walter Reed or McMillian Park.
With that being said there is an effect of the new supply on the DC market, which is lower rents. This is especially the case with inner ring suburbs such as Silver Spring, Bethesda, Alexandria, and Arlington. They are having a hard time competing right now with DC.
On the same token there is still a low supply of 3BR+ units and houses to buy in the city. Taking these are mostly row and single family homes this is likely to be the case in the future.
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