Washington, D.C. residential market update
DC is still short 156,000 homes. Now what?
What’s the Point?
Housing experts in Washington, D.C. expect slightly more market activity in 2024, with the metro area still short more than 100,000+ homes.
The DC Metro area should see an uptick in residential sales in 2024 — widening the gap between housing demand and supply.
A close watch on interest rates—and inventory
Last year, prospective buyers across the DC metro area hesitated, hoping interest rates might drop before they made any serious offers. Now, amid signs that market conditions could be improving, more of those buyers may be ready to hop off the fence and start negotiating a deal.
But there aren’t enough homes to keep up with the growing appetite for residential real estate in the area.
To understand the housing shortage in DC, Hines analysts studied the stock of existing homes, either to rent or buy, with the metro area population’s housing demand. According to Hines data quoted in Axios, the Washington, D.C. metro area needs an additional 156,000 more homes to meet residents’ needs.
So, what now?
One future-friendly housing solution: Co-living
There’s no simple solution to housing shortages, in the DC area or elsewhere, for that matter.
But thoughtfully developed co-living spaces offer one promising way forward.
Take Common Clover, for instance, Washington, D.C.’s largest purpose-built co-living building, which comprises 60 suites with 248 rooms. Managed by Common, the fully furnished suites range from two to five private bedrooms each and feature artfully designed living areas, high-end and fully stocked kitchens, multiple bathrooms depending on suite size, and in-unit laundry.
“Co-living and flexible housing options are becoming more sought after in the DC area and other major cities,” said Katie Wiacek, managing director at Hines. “We are proud to help elevate that desire for communal living with an attractive community that supports today’s residents.”
“Washington, D.C. needs more housing options—and that means bringing a more modern mix of spaces to the table. With cost of living always on the rise in world-class cities like ours, it’s exciting to help people achieve the communal, flexible lifestyle many aspire to,” said Wiacek.
Paving the way for a brighter future in DC housing
Interest rates may be unpredictable, but one thing is clear: There are not enough homes to go around in DC. Thoughtfully developed co-living spaces are one way to help fill the gap, and many other solutions exist, too.
By working proactively to deliver quality, community-enriching homes here and across the country, Hines is helping move the needle toward a world where supply and demand are in balance, and everyone has a good place to hang their hat.