Rents have been falling most of the past year thanks to an increase in new construction, but permits for new apartment buildings are slowing
(NASDAQ: RDFN) — The median rent in the District of Columbia rose 2.7% year over year to $2,325 in February, following three months of declines. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.
Asking rents have fallen nine of the past 12 months in the District, even as the wider Washington D.C. metro area saw some of the biggest rises in the country.
The median asking rent in the District peaked at $2,463 in July 2023, but has fallen since as apartment construction boomed, bouncing around between $2,265 and $2,350 over the past year.
Too early to tell if federal government job cuts will impact rents
The rise in asking rents in February comes as federal workers—who make up a significant proportion of the District’s workforce—face ongoing uncertainty amid return-to-office mandates and job cuts across multiple agencies.
Redfin Senior Economist Sheharyar Bokhari said it is too early to assess the impact of federal government job cuts on the local rental market.
“The District is always in transition, especially when a new administration takes office, with people moving in and out of the city for both government and private sector work opportunities,” Bokhari said. “Rents will be impacted if laid-off workers move away in droves, but also by workers who want to live closer to where they work, now they are required to be in the office.”
Bokhari said it’s also important to note that apartment construction is now slowing, leading to less new supply in coming years.
The District approved permits for 11 apartment units per 1,000 people in 2022, but that number slowed in 2023 (4 per 1,000 people) and 2024 (2 per 1,000 people).
Arlington rents rose 12.1%, while Silver Spring fell 7.3%
Among the 10 most-populous cities surrounding the District, Arlington, VA saw the biggest year-over-year increase in asking rents in February, rising 12.1% to $2,591. Next came Bethesda, MD (+11.1%) and Alexandria, VA (+6.4%).
Arlington County, where Arlington is located, has seen construction slow considerably in the past two years. The county approved 13 apartment units per 1,000 people in 2021, but only one apartment unit per 1,000 people in 2024.
Montgomery County, where Bethesda is located, has seen little apartment construction activity in recent years, but saw a relatively big jump in building permit approvals in 2024. Those new buildings—when they are finished in coming years—may help meet the demand that is causing rents to rise quickly.
Asking rents in the Washington D.C. metro area’s most-populous cities |
||
|
Asking Rent (February) |
Asking Rent YoY Change |
District of Columbia |
$2,325 |
2.7% |
Arlington, VA |
$2,591 |
12.1% |
Alexandria, VA |
$2,005 |
6.4% |
Germantown, MD |
$1,790 |
-0.4% |
Silver Spring, MD |
$1,695 |
-7.3% |
Frederick, MD |
$1,849 |
6.1% |
Gaithersburg, MD |
$2,074 |
-0.5% |
Rockville, MD |
$2,335 |
-4.3% |
Bethesda, MD |
$2,713 |
11.1% |
Reston, VA |
$2,199 |
2.5% |
Washington D.C. Metro Area |
$2,045 |
+9.2% |
At the other end of the spectrum, Silver Spring, MD, posted the biggest year-over-year decline, with the median asking rent falling 7.3% to $1,695. Next came Centreville, VA (-5.3%), and Rockville, MD (-4.3%).
Zooming out, the median rent in the greater Washington D.C. metro area—incorporating the District and surrounding counties in Maryland and Virginia—rose 9.2% year over year in February to $2,045.
To view the full report, please visit: https://www.redfin.com/news/washington-dc-rent-report.
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.8 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.
Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250305705822/en/
Contacts
Contact Redfin
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Kenneth Applewhaite
press@redfin.com
