From changing seasons to changing administrations in the White House, there are many factors that have a swift impact on the DC rental market. So what can we expect in 2021 and beyond with the new administration in place? We’re only a couple of months in, but the market is already seeing changes.
Good News for Owners: Real Estate Values Are Strong
If you own a rental property or a multi-unit residential building in Washington DC, your investment is doing well. The fact is that DC did not even see the usual 5% dip in prices during January that is considered normal. Of course, this does more than just make your building more valuable or allow you to charge a decent rate for your rental properties.
It also means that prices are often too high for new buyers to consider owning. That drives more people into the rental market, allowing you to keep your apartments, condos, or houses full. The downside, of course, is that nationally, about 1 in 5 renters is behind on payments due to the pandemic. So this is where the administration swoops in to help both renters and owners.
What the Administration Is Doing to Help Renters Meet Obligations
Unfortunately, communities of color are the hardest hit by the health and economic crisis. The administration is working to correct this disparity in a number of ways. One way is by providing a website that can help anyone who is struggling to maintain their current housing. If this is your situation, follow this link to see what help is available to you: https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/
Good News for Renters: Rental Prices Are Down in DC
If you are a renter, decreased prices are always a nice change. Why are rents going down if home values are holding steady? Once again, this relates to the current pandemic and economic crisis. Highrise units, in particular, have seen a drop in demand, as people are trying to give themselves a little distance from their neighbors.
With more people working from home, there is a tendency to look for less expensive and roomier rentals outside of the city center. Whereas, in the past, those were the hot properties that everyone wanted. They were willing to give up a little space to have a short commute to work. Now the commute is as simple as setting up a laptop for many people.
What Does the Future Hold for Renters and Buyers in DC?
With the pandemic ongoing, it is difficult to foretell what will happen in the near future. Either way, the Fred A. Smith Company will continue to be here for rental owners by providing the multi-unit building management and residential property manager you need. Let’s maximize your investment together. Call 202.337.5080 to get started.