D.C. rents are softer for the rich
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Rent was up for both top and average-rated D.C.-area apartments at the end of 2023, according to real estate firm CoStar Group, which rates buildings based on design, amenities, location and certifications.
Why it matters: Many Washingtonians are unlikely to catch a break on rent this year — again.
The big picture: Demand for more affordable apartments is helping to keep middle-of-the-road rent prices elevated, Jay Lybik, CoStar's national director of multifamily analytics, tells Axios.
- U.S. rents are generally still above pre-pandemic levels, analysts say.
Yes, but: A flood of new construction is pushing down U.S. rents at the high end, where there are often more apartments than renters who want them.
- That means the renters with the deepest pockets are more likely than others to score a deal.
State of play: While the country needs more housing, most new apartments are loaded with amenities in prime locations, experts say.
- Pet grooming stations and free coffee feel standard when some D.C.-area apartments come with art galleries and rooftop greenhouses, and offer Tesla rentals.
Be smart: The lower rent prices you see making news are for new leases only. Rents usually don't come down for those who aren't moving, Axios' Emily Peck reports.
Go deeper: Housing was wildly unaffordable for half of renters in 2022, report shows