Metro DC's Occupancy, Rent Growth Rates Top Nation

WASHINGTON, DC-This region continues to lead the nation as one of the top performers in the apartment industry, according to an M/PF Research survey, which reports that in most other markets last year’s tight conditions are getting more competitive. In March, average occupancy here reached 98.3%, up 0.3% from the same period last year, and rents jumped 12.8% during the past year. The study measured rent growth based on rates reported at the same properties in both March 2000 and March 2001.

“Metro Washington certainly ranks among the nation’s stellar apartment market performers right now,” says Greg Willett, M/PF’s director of research products. “Considering the improvements in both occupancy and rents, the revenues earned for apartment investors show more upturn recently in greater Washington than just about anywhere else across the country.”

The high occupancy and rent growth rates are the result of a “favorable relationship between supply and demand during the past year,” according to M/PF officials. Figures show that net demand was registered for some 3,100 apartments during the first quarter of this year, bringing annual net leasing for the 12 months ending in March to 8,240 apartments. That compares to new property completions of 1,758 units during the first quarter and 7,079 during the previous 12 months.