Why some D.C. renters aren’t in a hurry to buy homes
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One Zillow scroll showed 25-year-old Maggie Brenan buying a D.C. home isn't an option right now — and may not ever be.
Why it matters: Home shoppers' budgets don't go as far as they used to. "Why would you give up a high-amenity building for 30% less house?," says expert Sam Tenenbaum at Cushman & Wakefield.
- That's roughly the drop in home price that someone paying the average U.S. rent could afford in recent years, according to an analysis by the real estate services firm.
Zoom in: Brenan, who recently moved into a studio apartment in Arlington, spends $2,155 a month on rent.
- When it comes to homeownership, "that aspiration is kind of at odds with my desire to stay in the DC/Arlington area," Brenan says. For that reason, buying a house is off the table until she's ready for the 'burbs.
The other side: Luxury apartments across the country are offering saunas, dog spas and other perks to woo the wealthy and those putting off home purchases.
- A number of Axios readers responded to our Instagram callout asking about why you rent. Some want to buy but can't afford to, while some like the simplicity and perks of renting, including NoMa renter Liv Tummillo.
- She loves the built-in amenities and free maintenance that come with apartment living. Plus, a doorman and key access give her a sense of security.
By the numbers: The average D.C.-area asking rent in larger properties with multiple units rose roughly 4% to $2,217 in Q2 from a year earlier, CoStar Group data shows.
- Surging apartment supply helped soften pandemic rent increases nationwide, but that doesn't mean rents are affordable.
Reality check: Communal cold plunges aside, people who rent aren't building wealth the same as older generations. (They're investing more in stocks and retirement accounts.)
- Meanwhile, homeowners are getting rich after years of soaring house prices.