Caroline Tucker
WMAL.com
WASHINGTON — (WMAL) If you rent in D.C. or its immediate suburbs, you’ve probably noticed.. New research shows that rent prices are at a record high.
Axiometrics is a company that monitors apartment and student housing markets.The company’s recent research found that rent rates increased for the third straight month in March.
The average effective rent was about $1,718 in the D.C., Arlington, and Alexandria areas. That number is about $10 more than the month before and nearly $40 dollars higher than the year before.
“We are seeing pretty healthy rent growth in the Washington D.C. market,” said Chuck Ehmann, a real estate economist with Axiometrics.
Ehmann says higher rents typically mean a better economy.
“Generally it is the sign of a healthy market when rents are increasing and especially at a moderate pace of like we are seeing 2 to 2.5% right now,” said Ehmann.
Ehmann says the reason behind some of the rent increases has to do with an increase in jobs. But there are questions about whether renters will be able to afford the higher rental costs, even if they have a good job.
“Hopefully with the economy improving and employment dropping, that is going to put pressure on employers to start raising incomes,” said Ehmann.
Even though rents are increasing, renters may see fewer incentives when it comes time to rent. Ehmann noted that many apartments are getting rid of concessions and things that might entire renters like a free month of rent or an iPad. He says its because its not needed to entice renters as much anymore.
Axiometrics reasearch also showed that occupancy rates were also up a bit at 95.4% in D.C., Arlington, and Alexandria.
There is some good news though. Ehmann says the high rents are expected to level out because of all of the new construction that has been happening.
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