WASHINGTON, D.C.— Economic headwinds are accelerating in Washington, D.C., with total employment in 2009 falling for the first time since 2001, according to a second-quarter Apartment Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.While slower household creation and waning residential demand will challenge the local apartment market this year, the metro’s still-resilient job base will mitigate losses in property revenue, with leasing activity remaining healthiest near large, established clusters of employers.
“While the local apartment market is weathering the recession relatively well, investment activity was tepid in the first quarter of this year,” says Ramon Kochavi, regional manager of the Washington, D.C. office of Marcus & Millichap.
“Softening revenues and rising operating costs, though, may cause some owners to consider bringing their properties to market.”
Following are some of the most significant aspects of the Washington, D.C. Apartment Research Report:
· After employers trimmed payrolls by 12,100 workers in 2008, a projected 18,400 jobs will be lost this year, amounting to a 0.6 percent reduction in the work force.
· Apartment construction will slow in Washington, D.C., with 3,600 rental units slated to be delivered in 2009. Last year, nearly 5,100 apartments were added to inventory.
· Employment losses will hamper housing demand this year. Vacancy is forecast to rise 100 basis points to 6.4 percent, after ticking up 30 basis points in 2008.
· Asking rents are projected to decline 0.3 percent to $1,360 per month in 2009, while effective rents will retreat 1.5 percent to $1,287 per month. Asking and effective rents rose 3.6 percent and 3.3 percent, respectively, last year.
For a copy of the complete Washington, D.C. Apartment Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.
Press Contact: Stacey Corso, Communications Department, (925) 953-1716
No comments:
Post a Comment