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D.C. Rents Up 2.7% in February Following 3 Months of Declines; Too Soon to Tell if Whether Federal Job Cuts Will Affect the Market

Written by Posted On Wednesday, 05 March 2025 04:10
D.C. Rents Up 2.7% in February Following 3 Months of Declines; Too Soon to Tell if Whether Federal Job Cuts Will Affect the Market

Rents have been falling most of the past year thanks to an increase in new construction, but permits for new apartment buildings are slowing

The median rent in the District of Columbia rose 2.7% year over year to $2,325 in February, following three months of declines. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Asking rents have fallen nine of the past 12 months in the District, even as the wider Washington D.C. metro area saw some of the biggest rises in the country.

The median asking rent in the District peaked at $2,463 in July 2023, but has fallen since as apartment construction boomed, bouncing around between $2,265 and $2,350 over the past year.

Too early to tell if federal government job cuts will impact rents

The rise in asking rents in February comes as federal workers—who make up a significant proportion of the District’s workforce—face ongoing uncertainty amid return-to-office mandates and job cuts across multiple agencies.

Redfin Senior Economist Sheharyar Bokhari said it is too early to assess the impact of federal government job cuts on the local rental market.

“The District is always in transition, especially when a new administration takes office, with people moving in and out of the city for both government and private sector work opportunities,” Bokhari said. “Rents will be impacted if laid-off workers move away in droves, but also by workers who want to live closer to where they work, now they are required to be in the office.”

Bokhari said it’s also important to note that apartment construction is now slowing, leading to less new supply in coming years.

The District approved permits for 11 apartment units per 1,000 people in 2022, but that number slowed in 2023 (4 per 1,000 people) and 2024 (2 per 1,000 people).

Arlington rents rose 12.1%, while Silver Spring fell 7.3%

Among the 10 most-populous cities surrounding the District, Arlington, VA saw the biggest year-over-year increase in asking rents in February, rising 12.1% to $2,591. Next came Bethesda, MD (+11.1%) and Alexandria, VA (+6.4%).

Arlington County, where Arlington is located, has seen construction slow considerably in the past two years. The county approved 13 apartment units per 1,000 people in 2021, but only one apartment unit per 1,000 people in 2024.

Montgomery County, where Bethesda is located, has seen little apartment construction activity in recent years, but saw a relatively big jump in building permit approvals in 2024. Those new buildings—when they are finished in coming years—may help meet the demand that is causing rents to rise quickly.

Asking rents in the Washington D.C. metro area’s most-populous cities

 

Asking Rent (February)

Asking Rent YoY Change

District of Columbia

$2,325

2.7%

Arlington, VA

$2,591

12.1%

Alexandria, VA

$2,005

6.4%

Germantown, MD

$1,790

-0.4%

Silver Spring, MD

$1,695

-7.3%

Frederick, MD

$1,849

6.1%

Gaithersburg, MD

$2,074

-0.5%

Rockville, MD

$2,335

-4.3%

Bethesda, MD

$2,713

11.1%

Reston, VA

$2,199

2.5%

Washington D.C. Metro Area

$2,045

+9.2%

At the other end of the spectrum, Silver Spring, MD, posted the biggest year-over-year decline, with the median asking rent falling 7.3% to $1,695. Next came Centreville, VA (-5.3%), and Rockville, MD (-4.3%).

Zooming out, the median rent in the greater Washington D.C. metro area—incorporating the District and surrounding counties in Maryland and Virginia—rose 9.2% year over year in February to $2,045.

To view the full report, please visit: https://www.redfin.com/news/washington-dc-rent-report

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Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent. You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.

https://www.redfin.com

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