Real Estate

D.C. Apartment Rents Keep Rising While The Cost of Buying Homes Keeps Dropping

Like home prices, apartment and private home rents fell across the entire country during the recession, as millions of people moved in with parents or found roommates to cut their housing costs. But, the rental market has improved faster than the overall housing market, with gainfully employed people choosing to rent rather than risk purchasing. Until a few months ago, the popularity of renting in the last 18 months has driven the supply of rental units down and demand up, resulting in low vacancy rates and increased rents.

The average rent in downtown D.C. currently is $1,521 per month. That is a 5.4% annual increase over the previous year. Rents are actually appreciating faster than home prices for the first time in a long time.

In the last few months, the D.C. housing market has improved greatly, with buyers starting to compete again for attractive condos and homes listed for sale. As a busy downtown real estate brokerage operating actively in NW and NE, we’ve even seen some of our real estate listings be on the market for a matter of days prior to receiving offers and contracts from excited buyers.

The current real estate market in D.C. is in a unique flux right now. Home prices are still low from the recession as owners are afraid to ask too much and still have a perception of lost value in their minds. Gainfully employed potential buyers have plenty of options for attractive condos and homes for sale in great neighborhoods. And, most importantly, mortgage interest rates are below 4%.

This means that for qualified buyers with good credit, every $100,000 you borrow will cost you less than $500 a month. If you’re a renter and spending around the D.C. average of $1,500 per month, you could literally go out, choose a beautiful condominium for under $300,000, and be a homeowner for about the same monthly expense.

It’s slightly more complex than the above, but we are here to make it easy. Contact us today and one of our downtown D.C. agents is happy to help make the entire process of finding and purchasing the right downtown home easy. We run a low pressure sales process and are happy to invest time with you, whether you buy in 2 weeks, 2 months or even 2 years from now.

If you’re like to browse what’s available in the D.C. market on your own, we offer a new free D.C. listing search that is updated every hour.

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