Class B Apartment Market Washington Metro Area: Q3 2023

The Washington metro area’s Class B multifamily market is on a positive trajectory with vacancy rates showing stability and robust rent growth. Rent growth in the region was solid at 3.4% over the 12-month period ending September 2023. In Northern Virginia, the vacancy rate remained unchanged at 1.9%. Suburban Maryland also maintained its low vacancy rate with only a 50 basis points increase since September 2022. Rent growth in Suburban Maryland over the year was 2.7%. Meanwhile, in the District, vacancy rates increased 240 basis points to 3.3%. The District’s rent growth was at 3.4% year-over-year; however, rents have yet to recover to pre-pandemic levels in the Southwest submarket. Looking at the Washington metro area, rent growth outpaced the five-year average (except Suburban Maryland) and vacancy remained low, exemplifying the Class B multifamily market’s resilient recovery post-pandemic and the flight to affordability given the current state of inflation and economic uncertainty.

Delta Associates, the research affiliate of Transwestern, is a firm of experienced professionals which has been providing consulting and subscription data services to the commercial real estate industry for over 40 years.