More DC homeowners and homebuyers are choosing to rent, but it’s not all that easy

The apartment rental industry in the D C metro is among the majority of competitive in the nation right now with average rents up from a year ago and renter interest ranked No for the fifth month in a row based on searches according to RentCafe The uncertain economic activity is disproportionately driving that demand More homeowners who are selling are choosing to rent instead of buy another home More foreseen buyers at present 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 complex 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 disclosed Just to let you know I already have applications on this You ostensibly don t even want to waste your time coming to see it disclosed 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 possible homebuyers are also choosing to continue to rent The rental renewal rate in the D C metro in March was 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 promising buyers It s economic uncertainty in general I ve had a number of clients who ve postponed their search because they reported 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 mentioned Despite more renters staying put and more homeowners choosing to rent the area for home sales in the D C area remains strong Listing operation Bright MLS stated the number of real estate agent showings to prospective buyers in March rose and pending home sales rose compared to February More homeowners are listing though with new listings in the D C region in Mach up from a year ago Ferris predicts home sales in the D C area sphere 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 noted Source