Here’s some not-so-hot news coming off the holiday. DC rents for apartments have been rising at a rate that is nearly twice that of the rest of the country. UrbanTurf reports in with data from the Apartment List’s July rent report.
DC has seen increases in rents overall of 3.6% in the time period since last June. “These increases sneak up on you as a renter and are a nasty surprise at lease renewal. It’s more of an issue when you rent from larger buildings and management companies than from private landlords,” said Gerard DiRuggiero, Principal Broker of UrbanLand Company. “It really hurts your disposable income and ability to save money for the future unless you are regularly getting increases in your take-home income to compensate.”
Parts of DC are surging more than others. Mount Vernon Square and NoMa-H Street have seen the highest increases since last year, at 7.9% and 7.8%. Penn Quarter-Chinatown and U Street also grew at 6.6% and 5.5% each.
Rents are going to keep increasing. “You can tell more is coming just by the sheer amount of new developments being announced that have a rental apartment component,” said DiRuggiero. “DC real estate is very valuable, and a large number of new projects are going rental so that they can make a profits for years and years off of their investments. A lot of these same new projects will be converted to for-sale condos to be sold at a later date once home values increase even more. The only way to beat these increased costs of living is to buy right now and lock in your cost of living.”
What’s not increasing? Interest rates on 30 year fixed rate mortgages. Rates this week are just 3.32% from some loan providers. This is an insanely low cost of borrowing money. “The only real way to beat the rental problem is to buy and be your own landlord. When you go with a fixed rate mortgage, you lock in your payments for as long as you live in the home. Time is on your side once you own a piece of DC real estate, even if it is a studio condo,” said Gerard.
UrbanLand Company’s next Home Buyer Workshops are Tuesday night at 5:30pm and Saturday morning at 10am. This is our weekly schedule – all you have to do is RSVP by email and we’ll get you into a session!
Here’s some of the homes that our Workshop attendees have purchased. UrbanLand Company real estate agents have a high degree of success in helping attendees get into homes and condos!