Prospective home buyers in Washington, D.C., won’t see inventory loosen up anytime soon. The Washington Post opines that there are only three ways for there to be a net increase in inventory. The first is new construction, and while permits have increased, there’s an estimated shortfall of more than 50,000 units over the next five years just to meet new household formation. The second is investors who opt to sell units they’ve been holding as rental properties, but with rents rising faster than home prices, there’s no market pressure for that to happen. Third is homeowners leaving the area who decide to sell their residences; however, D.C. is still attracting more people than it’s losing.
January 11, 2017