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A DC Conundrum: Stable Housing Market Versus Slowing Rent Appreciation

WASHINGTON, DC—Freddie Mac's MiMi score shows DC is still the nation's most stable housing market. But now Zillow reports that rent appreciation is finally starting to slow. What's a renter to do?

By Erika Morphy | erikamorphy | | Updated on January 28, 2016
Freddie Mac headquarters Freddie Mac headquarters
WASHINGTON, DC—The math behind home ownership is a simple one for many: is it financially smarter to rent or buy in your particular area? Granted, in recent years, many people have chosen to rent for reasons that have nothing to do with money, but for the moment we’ll set those aside.

The Most Stable Housing Market in the US

In the DC area there has been one immutable fact that helps tip the scale towards homeowner ship. The area is the most stable housing market in the nation. That is according to Freddie Mac’s Multi-Indicator Market Index, or MiMi. The GSE just released it again on Wednesday with Washington DC ranked at 101. The other top stable markets rounding out the top five are North Dakota (96.5), Hawaii (95.9), Montana (95.7) and Utah (93.3). In general, the nation’s housing market is improving, according to the report. Compared to the same time last year, 21 states and the District of Columbia had MiMi values in a stable range. Today it is 33. To put the score in perspective, the national MiMi value stands at 82.5, indicating a housing market that is on its outer range of stable housing activity. It posted an improvement of +0.82 percent from October to November and a three-month improvement of +2.09 percent. On a year-over-year basis, the national MiMi value has improved +7.23 percent. Since its all-time low in October 2010, the national MiMi has rebounded 39 percent, but remains significantly off from its high of 121.7. So even DC has room for improvement (or room to grow another bubble, depending on how you look at it).

The Fast Pace of Rising Rents

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