Photo by Tim Brown
D.C. is seeing the most housing construction activity in more than five decades, according to a recently released report by the Washington DC Economic Partnership (WDCEP).
The organization’s annual development report gives a summary of major development and construction projects taking place across the city, including trends in the residential market such as unit sizes and costs. The 100-page report also breaks down office, retail, hospitality, and education developments.
As of August, there were 14,847 residential units under construction or renovation.
From September 2015 through 2016, the city issued 5,129 housing building permits—a 24 percent increase from the previous 12 months. And the number of permits has increased by 42 percent between 2010 and 2015 compared to the previous ten years. According to the report, that represents highest level of construction activity since the 1960s.
The development boom is largely driven by the increase of young professionals in the city (up from 34.4 percent to 36.9 percent of the population over the last 10 years). And with increasing tendencies to rent rather than own, nearly 90 percent of the units under construction are rentals.
In terms of design, living spaces continue to get smaller. The average size of a one-bedroom apartment in D.C. has dropped from about 850 square feet in the early 2000s to around 750 square feet today. “Shrinking unit sizes helped maintain absolute rent levels, thereby generating rent growth in per square foot rental rates,” according to the report.
Additionally, D.C. renters care more about things like proximity to public transportation and other lifestyle amenities that developers are offering from indoor basketball courts and rooftop dog parks to an Uber room where residents can wait to be picked up.
But as units get tinier, rent prices continue to rise. And Foggy Bottom residents are paying the most. An average one bedroom costs about $2,672 in the Northwest neighborhood, according to WDCEP. And a recent report from Apartment List, which also named Foggy Bottom as most costly, noted that two bedrooms go for about $4,480—this compares to D.C.’s average monthly costs of $3,050 for a two bedroom and $2,220 for a one bedroom residence.
However, the H Street corridor had D.C.’s largest residential deal this year when the Flats at Atlas apartment complex sold for $95 million.
Development Report 2016 by Christina Sturdivant on Scribd
