The apartment rental market in the D.C. metro is among the most competitive in the nation right now, with average rents up 8% from a year ago, and renter interest ranked No. 1 for the fifth month in a row based on searches, according to RentCafe.
The uncertain economy is disproportionately driving that demand. More homeowners who are selling are choosing to rent instead of buy another home. More potential buyers currently renting are choosing to stay in their rental instead of buying. And the supply of apartments from new construction is constrained.
It is making it difficult for anyone looking for a rental apartment in the D.C. area to find one.
“I had one client who was looking to rent a place in Vienna because she’s selling her home. We scheduled a tour and the listing agent called me and said, ‘Just to let you know, I already have 20 applications on this. You probably don’t even want to waste your time coming to see it,’” said Matt Ferris, a broker with Redfin in Northern Virginia.
The Metro-accessible townhome his client was interested in is an example of how a prime location can intensify demand, though Redfin reports in March that there were an average of seven lease applications for every one available apartment for rent.
More potential homebuyers are also choosing to continue to rent. The rental renewal rate in the D.C. metro in March was 59%, a historical high. That is also putting pressure on vacancy supply.
It is not just higher mortgage rates and rising home prices that are sidelining more potential buyers. It’s economic uncertainty in general.
“I’ve had a number of clients who’ve postponed their search because they said I just need to see how this shakes out before I commit to a mortgage payment. I’d rather default on a lease in a worst-case scenario than default on a mortgage,” Ferris said.
Despite more renters staying put and more homeowners choosing to rent, the market for home sales in the D.C. area remains strong. Listing service Bright MLS said the number of real estate agent showings to prospective buyers in March rose 40%, and pending home sales rose 42.1% compared to February. More homeowners are listing though, with new listings in the D.C. region in Mach up 19.2% from a year ago.
Ferris predicts home sales in the D.C. area market will eventually slow and price gains will moderate, but not just because of high borrowing costs or high prices.
“On top of that, you’ve got the DOGE thing. You’ve got the return to office. You’ve got people who’ve already been laid off. You’ve got people who are worried about being laid of. So, I think there are more and more storm clouds,” he said.
Get breaking news and daily headlines delivered to your email inbox by signing up here.
© 2025 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.
