T H E E C O N O M Y A N D M U LT I F A M I LY M A R K E T S IN THE WASHINGTON METRO AREA J U N E 2 0 1 5
A G E N DA 1. National and Regional Economy 2. Demographic Shifts Impact Multifamily Design 3. Washington Area Apartment Market 4. Washington Area Condominium Market Source: Delta Associates; June 2015.
T H E E C O N O M Y A N D M U L T I F A M I L Y M A R K E T S I N T H E W A S H I N G T O N M E T R O A R E A N AT I O N A L A N D R E G I O N A L E C O N O M Y
N AT I O N A L E C O N O M I C R E C O V E R Y United States 1981-2015 U N E M P L O Y M E N T R A T E A N D A N N U A L I Z E D G D P C H A N G E 15% 51 months: Recession + Recovery 32 months: Recession + Recovery 32 months: Recession + Recovery 81 months: Recession + Recovery 10% 5% 0% 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15-5% -10% Percent Change in GDP Recession Unemployment Rate Recovery Source: BLS, BEA, Center for Regional Analysis, Global Insight, Delta Associates; June 2015.
PAY R O L L J O B G R O W T H Selected Large Metro Areas 12 Months Ending April 2015 T H O U S A N D S O F N E W P AY R O L L J O B S 250 200 150 100 65.6 50 0 LA Basin NY SF Bay DFW Atl South FL Hou Was Chi Phx Bos Denver Source: Bureau of Labor Statistics, Delta Associates; June 2015.
PAY R O L L J O B G R O W T H Washington Metro Area 1994 12 Months Ending April 2015 T H O U S A N D S O F N E W P AY R O L L J O B S 140 120 20-Year Annual Average = 41,740/Year 100 80 60 40 20 0-20 -40-60 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15* Source: Bureau of Labor Statistics, Delta Associates; June 2015.
PAY R O L L J O B G R O W T H Washington Metro Area 1994 12 Months Ending April 2015 T H O U S A N D S O F N E W P AY R O L L J O B S 140 120 20-Year Annual Average = 41,740/Year 100 80 60 40 20 0-20 -40-60 39,100/Year 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15* Source: Bureau of Labor Statistics, Delta Associates; June 2015.
U N E M P L O Y M E N T R AT E Selected Large Metro Areas March 2014 vs. March 2015 U N E M P L O Y M E N T R A T E 9% March 2014 March 2015 8% 7% National Rate* 6.6% 6% 5% 5.5% 4% 3% 2% 1% Basis Point Change 0% DFW Hou SF Bay Den Bos Was Phx S Fla Atl NY Chi LA Basin -130-100 -160-160 -110-50 -140-130 -110-110 -170-130 Source: Bureau of Labor Statistics, Delta Associates; June 2015. *Seasonally adjusted.
I M PAC T O F S EQ U EST E R O N GDP GROWTH Washington Metro Area 2012 2014 % C H A N G E I N S P E N D I N G 0.0% -0.1% -0.2% -0.3% -0.4% -0.5% -0.6% -0.7% -0.8% -0.9% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 Source: Moody s Analytics, Delta Associates; June 2015.
P R O J E C T E D J O B G R O W T H Washington Metro Area T H O U S A N D S O F N E W P AY R O L L J O B S 140 120 100 80 60 40 20 20-Year Annual Average = 41,700/Year 5-Year Projected Average = 47,300/Year 0-20 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19-40 -60 District of Columbia Suburban Maryland Northern Virginia Source: Bureau of Labor Statistics, Dr. Stephen Fuller, Delta Associates; June 2015.
PAY R O L L J O B G R O W T H Washington Metro Area 12 Months Ending April 2015 Professional/Business Services Education/Health State and Local Government Retail Trade Leisure/Hospitality Construction/Mining Transportation/Utilities Federal Government Other Services Wholesale Trade Financial Activities Information Manufacturing +69,200-3,600-6,000-4,000-2,000 0 2,000 4,000 6,000 8,000 10,000 12,000 J O B C H A N G E Source: Bureau of Labor Statistics, Delta Associates; June 2015.
JOBS THAT SUPPORT CLASS A APARTMENTS Washington Metro Area 12 Months Ending April 2015 Professional/Business Services Education/Health State and Local Government Retail Trade Leisure/Hospitality Construction/Mining Transportation/Utilities Federal Government Other Services Wholesale Trade Financial Activities Information Manufacturing -6,000-4,000-2,000 0 2,000 4,000 6,000 8,000 10,000 12,000 J O B C H A N G E Source: Bureau of Labor Statistics, Delta Associates; June 2015.
JOBS THAT SUPPORT CLASS B APARTMENTS Washington Metro Area 12 Months Ending April 2015 Professional/Business Services Education/Health State and Local Government Retail Trade Leisure/Hospitality Construction/Mining Transportation/Utilities Federal Government Other Services Wholesale Trade Financial Activities Information Manufacturing -6,000-4,000-2,000 0 2,000 4,000 6,000 8,000 10,000 12,000 J O B C H A N G E Source: Bureau of Labor Statistics, Delta Associates; June 2015.
J O B S T H AT S U P P O R T C O N D O M I N I U M S Washington Metro Area 12 Months Ending April 2015 Professional/Business Services Education/Health State and Local Government Retail Trade Leisure/Hospitality Construction/Mining Transportation/Utilities Federal Government Other Services Wholesale Trade Financial Activities Information Manufacturing -6,000-4,000-2,000 0 2,000 4,000 6,000 8,000 10,000 12,000 J O B C H A N G E Source: Bureau of Labor Statistics, Delta Associates; June 2015.
T H E E C O N O M Y A N D M U L T I F A M I L Y M A R K E T S I N T H E W A S H I N G T O N M E T R O A R E A D E M O G R A P H I C S H I F T S I M P A C T M U LT I F A M I LY D E S I G N
R E N T E R P R E F E R E N C E Renter Households Washington Metro vs. United States R E N T E R S A S A P E R C E N TA G E O F T O T A L H O U S E H O L D S 37% 36% 35% U.S. 34% 33% 32% WASHINGTON METRO 31% 30% 29% 28% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Y E A R Source: U.S. Census Bureau, Delta Associates; June 2015.
O W N v s. R E N T R E S I D E N C E United States P E R C E N T O F G E N E R A T I O N Own Rent 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 54% Millennials 20% Baby Boomer Source: 2013 ULI/BRS National Survey, Delta Associates; June 2015.
SHARE OF POPULATION BETWEEN 25 34 YEARS OLD Largest Metro Areas 2013 P E R C E N T O F P O P U L A T I O N 25-3 4 Y E A R S O L D 16% 15.7% Arlington County: 28% City of Alexandria: 24% 15% The District: 23% 14% 13% 12% 11% Source: U.S. Census Bureau, Delta Associates; June 2015.
C L A S S A T E N A N T P R O F I L E Washington Metro Area Source: The Bozzuto Group, Delta Associates; June 2015.
C L A S S A T E N A N T P R O F I L E Washington Metro Area Source: The Bozzuto Group, Delta Associates; June 2015.
C L A S S A T E N A N T P R O F I L E Washington Metro Area Source: The Bozzuto Group, Delta Associates; June 2015.
C L A S S A T E N A N T P R O F I L E Washington Metro Area Source: The Bozzuto Group, Delta Associates; June 2015.
C L A S S B T E N A N T P R O F I L E Washington Metro Area Source: ROSS Companies, Delta Associates; June 2015.
C L A S S B T E N A N T P R O F I L E Washington Metro Area Source: ROSS Companies, Delta Associates; June 2015.
C L A S S B T E N A N T P R O F I L E Washington Metro Area Source: ROSS Companies, Delta Associates; June 2015.
C L A S S B T E N A N T P R O F I L E Washington Metro Area Source: ROSS Companies, Delta Associates; June 2015.
N E W T E N A N T P R O F I L E District of Columbia Source: The Bozzuto Group, Delta Associates; June 2015.
N E W T E N A N T P R O F I L E District of Columbia Source: The Bozzuto Group, Delta Associates; June 2015.
N E W T E N A N T P R O F I L E District of Columbia Source: The Bozzuto Group, Delta Associates; June 2015.
N E W T E N A N T P R O F I L E District of Columbia Source: The Bozzuto Group, Delta Associates; June 2015.
N E W T E N A N T P R O F I L E District of Columbia Source: The Bozzuto Group, Delta Associates; June 2015.
C H A N G I N G D E M A N D PAT T E R N S Residents Without Cars in Bozzuto- and Kettler-Managed Buildings 2014 S H A R E O F R E S I D E N T S W I T H O U T C A R S 60% 51% 40% 36% 27% 26% 20% 10% 0% District RB Corridor Bethesda Pentagon City Reston Source: Kettler, The Bozzuto Group, Delta Associates; June 2015.
A V E R A G E U N I T S I Z E ( S Q U A R E F E E T ) AV E R A G E S I Z E O F N E W LY - D E L I V E R E D M U LT I FA M I LY U N I T S District of Columbia 950 900 850 800 851 840 863 Apartments Condos 750 737 700 2010 2014 Source: Delta Associates; June 2015.
A PA R T M E N T S Changing Nature of Space
A PA R T M E N T S Changing Nature of Space
A PA R T M E N T S Changing Nature of Space
A V E R A G E R E N O V A T I O N B U D G E T P E R U N I T N U M B E R O F U N I T S APARTMENT PROPERTIES UNDERGOING RENOVATION Washington Metro Area $40,000 Number of Units Average Renovation Budget 35,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 30,000 25,000 20,000 15,000 10,000 5,000 $0 0 Source: Delta Associates; June 2015. *As of the First Quarter.
T H E E C O N O M Y A N D M U L T I F A M I L Y M A R K E T S I N T H E W A S H I N G T O N M E T R O A R E A W A S H I N G T O N A R E A A P A R T M E N T M A R K E T
LONG TERM ANNUAL APARTMENT ABSORPTION National Market Leaders L O N G T E R M A N N U A L A B S O R P T I O N O F A L L C L A S S E S O F U N I T S 10,000 9,000 8,000 7,000 6,000 5,637 5,000 4,000 3,000 2,000 1,000 0 DFW Hou Atl Was LA Phx Balt Phil Chi Pgh Source: REIS, Delta Associates; June 2015. Note: Excludes NY metro to conserve scale.
LONG TERM ANNUAL APARTMENT ABSORPTION National Market Leaders L O N G T E R M A N N U A L A B S O R P T I O N O F A L L C L A S S E S O F U N I T S 10,000 9,000 Past 12 Months: 16,404 8,000 7,000 6,000 5,637 5,000 4,000 3,000 2,000 1,000 0 DFW Hou Atl Was LA Phx Balt Phil Chi Pgh Source: REIS, Delta Associates; June 2015. Note: Excludes NY metro to conserve scale.
LONG TERM ANNUAL APARTMENT ABSORPTION National Market Leaders L O N G T E R M A N N U A L A B S O R P T I O N O F A L L C L A S S E S O F U N I T S 10,000 9,000 Past 12 Months: 16,404 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 5,637 Class A Only Past 12 Months: 12,623 0 DFW Hou Atl Was LA Phx Balt Phil Chi Pgh Source: REIS, Delta Associates; June 2015. Note: Excludes NY metro to conserve scale.
LONG TERM ANNUAL APARTMENT ABSORPTION National Market Leaders L O N G T E R M A N N U A L A B S O R P T I O N O F A L L C L A S S E S O F U N I T S 10,000 9,000 Past 12 Months: 16,404 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 5,637 Class B Only Past 12 Months: 3,781 0 DFW Hou Atl Was LA Phx Balt Phil Chi Pgh Source: REIS, Delta Associates; June 2015. Note: Excludes NY metro to conserve scale.
C L A S S B A PA R T M E N T A B S O R P T I O N Washington Metro Area C L A S S B A P A R M E N T U N I T S Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 6,000 4,000 2,000 0-2,000-4,000-6,000 Source: Delta Associates; June 2015. Note: Each quarter shows absorption over the past 12 months.
C L A S S A A PA R T M E N T A B S O R P T I O N Washington Metro Area C L A S S A A P A R M E N T U N I T S Long-Term Average = 6,282 Average Since 2008 = 7,188 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 05 06 07 08 09 10 11 12 13 14 15* 16 17 18 Source: Delta Associates; June 2015. *12 months trailing March 2015.
C L A S S A A PA R T M E N T A B S O R P T I O N Washington Metro Area C L A S S A A P A R M E N T U N I T S Long-Term Average = 6,282 Average Since 2008 = 7,188 Annual Average = 9,167 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 05 06 07 08 09 10 11 12 13 14 15* 16 17 18 Source: Delta Associates; June 2015. *12 months trailing March 2015.
ABSORPTION PACE PER PROJECT PER MONTH For Projects in Initial Lease-Up Washington Metro Area M O N T H LY A B S O R P T I O N P A C E P E R P R O J E C T S I N C E M A R K E T I N G B E G A N 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 Source: Delta Associates; June 2015.
ABSORPTION PACE PER PROJECT PER MONTH For Projects in Initial Lease-Up Washington Metro Area M O N T H LY A B S O R P T I O N P A C E P E R P R O J E C T S I N C E M A R K E T I N G B E G A N N U M B E R O F P R O J E C T S I N A C T I V E L E A S E U P 85 75 65 55 45 35 25 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 15 Source: Delta Associates; June 2015.
A PA R T M E N T VA C A N C Y R AT E S Major Apartment Markets First Quarter 2015 V A C A N C Y R A T E ( A L L C L A S S E S ) 7.0% 6.0% National Rate: 4.2% 5.0% 4.0% 4.2% 3.0% 2.0% 1.0% 0.0% LA NY Chi Wash Phx DFW Atl Hou Phi Balt Source: REIS, Delta Associates; June 2015.
A PA R T M E N T VA C A N C Y R AT E S Major Apartment Markets First Quarter 2015 V A C A N C Y R A T E ( A L L C L A S S E S ) 7.0% 6.0% Class A Only : 4.6% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% LA NY Chi Wash Phx DFW Atl Hou Phi Balt Source: REIS, Delta Associates; June 2015.
A PA R T M E N T VA C A N C Y R AT E S Major Apartment Markets First Quarter 2015 V A C A N C Y R A T E ( A L L C L A S S E S ) 7.0% 6.0% Class B Only : 3.4% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% LA NY Chi Wash Phx DFW Atl Hou Phi Balt Source: REIS, Delta Associates; June 2015.
A N N U A L E F F E C T I V E R E N T G R O W T H Class A Apartments Washington Metro Area E F F E C T I V E R E N T G R O W T H 10% 8% Long Term Average Rent Growth = 4.1% 6% 4% 3.4% 2% 0% -2% -0.6% -4% 2008 2009 2010 2011 2012 2013 2014 2015* 2014 W A S H I N G T O N M E T R O U. S. Source: REIS, Delta Associates; June 2015. *12-months ending First Quarter 2015.
A N N U A L E F F E C T I V E R E N T G R O W T H Class A Apartments Washington Metro Area E F F E C T I V E R E N T G R O W T H 10% 8% Long Term Average Rent Growth = 4.1% 6% 4% 3.4% 2% 0% -2% -0.6% -4% 2008 2009 2010 2011 2012 2013 2014 2015* 2014 W A S H I N G T O N M E T R O U. S. Source: REIS, Delta Associates; June 2015. *12-months ending First Quarter 2015.
A F F O R D A B I L I T Y Class A High-Rise Submarkets Washington Metro Area Source: ESRI, Delta Associates; June 2015.
A F F O R D A B I L I T Y Class A High-Rise Submarkets Washington Metro Area Source: ESRI, Delta Associates; June 2015.
EFFECTIVE RENTAL RATE AND VACANCY RATE Class B Apartments Washington Metro Area A V E R A G E E F F E C T I V E B A S E R E N T V A C A N C Y R A T E $1,600 Average Effective Base Rent Vacancy 5.5% $1,500 $1,400 5.0% 4.5% 4.0% $1,300 3.5% $1,200 $1,100 3.0% 2.5% 2.0% $1,000 1.5% Source: Delta Associates; June 2015. Note: Data is from First Quarter of each year.
36 MONTH APARTMENT DEVELOPMENT PIPELINE Washington Metro Area M A R K E T R A T E U N I T S P L A N N E D A N D U N D E R C O N S T R U C T I O N 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* Source: Delta Associates; June 2015. * As of First Quarter 2015.
D E M A N D A N D D E L I V E R Y P R O J E C T I O N S Class A Apartments Three Years Ending March 2018 M A R K E T R A T E U N I T S I N T H O U S A N D S 18 16 14 12 10 8 6 4 2 Demand Net Absorption: 9,167/Year = 27,500 Deliveries Planned and may deliver by 3/18: 5,820 units Under construction: 33,123 units 0 The District Suburban Maryland Northern Virginia 4.3% 3.6% 5.0% Projected Stabilized Vacancy % at March 2018 4.2% Metro-Wide Total = 38,943 units Source: Delta Associates; June 2015.
C L A S S A A PA R T M E N T R E N T G R O W T H Washington Metro Area P E R C E N T E F F E C T I V E R E N T G R O W T H 10% 8% Long-Term Average = 4.1% 6% 4% 2% 0% -2% -4% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016 2017 2018 Source: Delta Associates; June 2015. *Annual rent change at First Quarter 2015 is -0.6%.
Y E A R S O F S U P P LY Class A Low-Rise Submarkets Washington Metro Area Source: Delta Associates; June 2015.
Y E A R S O F S U P P LY Class A High-Rise Submarkets Washington Metro Area Source: Delta Associates; June 2015.
O P P O R T U N I T I E S D U R I N G T H I S C Y C L E Washington Metro Area Apartment Market 1. U P G R A D E W E L L - L O C AT E D C L A S S B A S S E T S 2. R E P U R P O S E O R B U I L D N E W A S S E T S T H AT A P P E A L T O M I L L E N I A L P R E F E R E N C E S 3. B U I L D N E W U N I T S T H AT A P P E A L T O E M P T Y - N E S T E R S / B A B Y B O O M E R S 4. A C C O M M O D AT E W O R K - AT- H O M E T E N A N T S Source: Delta Associates; June 2015.
T H E E C O N O M Y A N D M U L T I F A M I L Y M A R K E T S I N T H E W A S H I N G T O N M E T R O A R E A W A S H I N G T O N A R E A C O N D O M I N I U M M A R K E T
N U M B E R O F U N I T S T H E C O N D O M I N I U M M A R K E T New Condominiums Actively Marketing or Under Construction Washington Metro Area 2007 March 2015 18,000 16,000 16,080 14,000 12,000 10,000 8,969 8,000 6,000 4,000 5,314 4,261 3,746 2,577 3,176 3,281 3,226 2,000 0 2007 2008 2009 2010 2011 2012 2013 2014 Q1 2015 Source: Delta Associates; June 2015.
NUMBER OF NEW UNITS SOLD T H E C O N D O M I N I U M M A R K E T Past and Projected New Condominium Unit Sales Washington Metro Area 2007 2015 4,000 3,500 3,000 2,500 2,000 1,500 1,470 1,000 500 0 2007 2008 2009 2010 2011 2012 2013 2014 2015* 2015 Source: Delta Associates; February 2015. * 12 months ending March.
T H E C O N D O M I N I U M M A R K E T Past and Projected New Condominium Unit Sales Washington Metro Area 2007 2015 NUMBER OF NEW UNITS SOLD 4,000 3,500 3,000 2,500 2,000 1,500 1,000 1,470 1,800 500 0 2007 2008 2009 2010 2011 2012 2013 2014 2015* 2015 Source: Delta Associates; February 2015. * 12 months ending March.
T H E C O N D O M I N I U M M A R K E T Months of New Condo Inventory Washington Metro Area 2005 2015 MONTHS OF INVENTORY 60 50 40 30 20 16.8 10 0 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 Q1 Q2 Q3 Q4 2015 Source: Delta Associates; June 2015.
MONTHS OF INVENTORY T H E C O N D O M I N I U M M A R K E T Months of New Condo Inventory Washington Metro Area 2005 2015 60 50 40 30 20 16.6 10 0 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 Q1 Q2 Q3 Q4 2015 Source: Delta Associates; June 2015.
T H E C O N D O M I N I U M M A R K E T Months of New Condo Inventory Washington Metro Area First Quarter 2015 Note: Calculated by dividing actively marketing inventory by sales during the past 12 months and multiplying by 12. Source: Delta Associates; June 2015.
T H E C O N D O M I N I U M M A R K E T New Condominium Prices Per SF Washington Metro Area First Quarter 2015 A V E R A G E E F F E C T I V E C O N T R A C T P R I C E P E R S F $1,000 $800 $600 $400 $800 $650 $495 $495 $440 $300 $275 $200 $0 $175 No Sales Data Source: Delta Associates; June 2015.
T H E C O N D O M I N I U M M A R K E T New Condominium Prices Per SF Selected Downtown Areas in the U.S. First Quarter 2015* A V E R A G E P R I C E P E R S F $1,800 $1,600 $1,634 $1,400 $1,200 $1,176 $1,000 $800 $800 $776 $733 $728 $600 $400 $415 $200 $0 Manhattan San Francisco Central DC Downtown L.A. Downtown Boston Downtown Seattle Baltimore City Source: The Mark Company, StreetEasy, The Collaborative Company, Delta Associates; June 2015. * Year-End 2014 data except for Central DC and Baltimore City, which are as of March 2015.
A N N U A L E F F E C T I V E P R I C E C H A N G E T H E C O N D O M I N I U M M A R K E T New Condominium Effective Price Change Washington Metro Area 2005 2015 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% 8.8% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Delta Associates; June 2015.
A N N U A L E F F E C T I V E P R I C E C H A N G E T H E C O N D O M I N I U M M A R K E T New Condominium Effective Price Change Washington Metro Area 2005 2015 10% 8% 6% 4% 2% 0% -2% -4% -6% 8.8% 7.0% -8% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* Source: Delta Associates; June 2015. * Prices increased by 7.6% for the 12-month period ending March 2015.
T H E C O N D O M I N I U M M A R K E T Resale Condo Active Listings Trend Washington Metro Area 2005 2015 N U M B E R O F L I S T I N G S 7,000 6,000 5,000 District Sub MD NoVA 4,000 3,000 2,000 1,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* Source: Delta Associates; June 2015. *As of February 2015.
T H E C O N D O M I N I U M M A R K E T Resale Condo Sales Price Change Washington Metro Area 2005 2015 % C H A N G E 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* Source: Delta Associates; June 2015. *12 months ending February
T H E C O N D O M I N I U M M A R K E T Condo Unit Deliveries Washington Metro Area 2005 2015 M A R K E T R A T E U N I T S 12,000 10,000 District SubMD NoVa 8,000 6,000 Normalized range 4,000 2,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Delta Associates; June 2015.
T H E C O N D O M I N I U M M A R K E T Condo Demand and Supply Projections Washington Metro Area First Quarter 2015 First Quarter 2018 M A R K E T R A T E U N I T S 4,000 3,500 3,000 2,500 D E M A N D Net Sales: 2,200/Year = 6,600 units S U P P LY 1 2,000 1,500 1,000 500 0 The District No VA Sub MD Planned and May Begin Marketing by 3/18: 2,466 units Under Construction and/or Marketing: 3,226 units 2 Total = 5,692 units 1 Probable supply after projected attrition. 2 Includes unsold units at projects selling. Source: Delta Associates; June 2015.
O P P O R T U N I T I E S D U R I N G T H I S C Y C L E Washington Metro Area Condominium Market 1. M AT C H N E W D E V E L O P M E N T D E S I G N T O F I R S T - T I M E B U Y E R S 2. S E L E C T S U P E R I O R L O C AT I O N S A N D D E S I G N U N I T S W I T H L A R G E R R O O M S F O R B O O M E R S I N S E A R C H O F A N E M P T Y N E S T 3. C R E AT E P L A C E - M A K I N G I N A M I X E D - U S E S E T T I N G Source: Delta Associates; June 2015.
T H E E C O N O M Y A N D M U LT I F A M I LY M A R K E T S IN THE WASHINGTON METRO AREA J U N E 2 0 1 5