From Urbanturf.com: Class A apartment rents in the region changed little in the second quarter of 2015 versus the previous year, according to a report out late last week. But in a few pockets, rents rose even as new product continued to hit the market.
The report from Delta Associates analyzing the regional apartment market states that rents for Class A apartments in sub-markets including Capitol Hill/Navy Yard (+4.2 percent) and Columbia Heights/Shaw (+2.1 percent) increased over the last 12 months. However, rents for new apartment product did not rise across the board. For example, rents fell about 3 percent in Arlington and just over 3 percent in NoMa/H Street.
While rents have been rising and falling across the region, the absorption of units at new buildings remains at record levels.
From Delta Associates:
The Washington area’s Class A apartment absorption was 13,800 units over the past 12 months — more than double the 10-year annual average of 6,595 units and a new record for the region. Unlike past dynamics, Class A absorption was not at the expense of the Class B market, which also experienced positive absorption of 2,684 units.
Here is a quick snapshot of average rents for Class A apartments in DC area sub-markets, as defined by Delta:
Central (Penn Quarter, Logan Circle, Dupont Circle, etc.): $2,729 a month
Upper Northwest: $2,877 a month
Columbia Heights/Shaw: $2,631 a month
NoMa/H Street: $2,267 a month
Capitol Hill/Riverfront: $2,235 a month
Rosslyn-Ballston Corridor: $2,351 a month
South Arlington: $1,997 a month
Bethesda: $2,541 a month
Note: The rents are an average of studios, one and two-bedroom rental rates at new buildings in the DC area.
The report released last week looked at Class A apartment projects. Next week, UrbanTurf will take a closer look at the state of the Class B market.
Class A apartments are typically large buildings built after 1991, with full amenity packages. Class B buildings are generally older buildings that have been renovated and/or have more limited amenity packages.