“Among all large cities with populations over 250,000 for which we have data, D.C. ranks number 35 out of 70 for year-over-year rent growth,” Salviati said in an email. “This relatively modest pace of growth has been characteristic of the D.C. market in recent years.”
Relatively stable rents in the area are likely attributable to an influx of new units hitting the market, according to Salviati.
“The number of new housing units permitted in the District surpassed its pre-recession peak in 2011 and has maintained a heightened pace in the years since, driven primarily by the construction of large multifamily apartment complexes,” Salviati added. “That said, D.C. has also been rapidly adding new jobs. Over the past 10 years, we estimate that while the D.C. metro as a whole has added enough new housing to keep pace with job growth, D.C. proper has had a slight undersupply of new construction.”
The median rent for a two-bedroom apartment in the region is $1,577, above the national average of $1,189. Rent increases are occurring throughout the D.C. metro area. According to Apartment List, rents have risen in the largest 10 cities within the region.
“The high demand for housing in D.C. has made it one of the nation’s more expensive markets,” wrote Salviati. “Among the same set of large cities referenced above, D.C. ranks as the 12th most expensive.”
Cities that rank more expensive than the District include San Francisco; San Jose; New York; Anaheim, Calif.; Boston; San Diego; Santa Ana, Calif; Long Beach, Calif; Los Angeles; Seattle; and Aurora, Colo.
Cities where rents are rising faster than the national average include Mesa, Ariz; Henderson, Nev.; Las Vegas; Phoenix; Raleigh, N.C.; Austin; Greensboro, N.C.; Nashville; Colorado Springs; and Charlotte.