Washington metro area’s Class B multifamily market is experiencing rising vacancy while rent growth remains robust (at least in the suburbs). Rent growth in the region was solid at 4.1% in 2023. In Northern Virginia, the vacancy rate increased 20 basis points to 2.6% while rents were up by 4.9%. Suburban Maryland also maintained its low vacancy rate with only a 30 basis-point increase since December 2022. Rent growth in Suburban Maryland over the year was 3.9%. Meanwhile, in the District, vacancy rates increased 160 basis points to 3.5%. Rent growth was negative in the District with a -0.8% decrease in 2023. Metro-wide, rent growth outpaced the five-year average (except in The District) 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.
- Northern Virginia up 4.9%
- Suburban Maryland up 3.9%
- District down 0.8%
- Metro-wide low-rise up 4.6%
- Metro-wide mid and high-rise up 3.4%
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.
