Construction Continues to Stifle Pricing Performance in Washington, DC

Construction has been the dominant theme for Washington, DC’s apartment market performance throughout much of this economic cycle. With completion volumes roughly 60% above the market’s long-term average, rent growth has suffered over the past five years as operators set prices to fill units. That’s typical among top-end product. But what makes the impact of elevated construction volumes different in DC is that operators of product typically insulated from new supply’s competitive pressures have reigned in their pricing strategies, too. MPF Research economists discuss these themes and their impact on the outlook for the Washington, DC apartment market in this edition of Apartment Market Dynamics.