In the first quarter of 2023, all Mid-Atlantic metro markets surveyed by Newmark, except Hampton Roads, experienced an increase in net leasing demand. Effective rent growth remained positive, though the pace of growth has decreased since 2021. Among the three substate regions in the Washington metro area, Washington DC and Northern Virginia boast the highest annualized rent appreciation at 4.3 % and 4.2%, respectively. Continuing economic headwinds are beginning to impact the multifamily investment markets. Persistently high inflation has forced the Federal Reserve to institute steady interest rate hikes, which has softened real estate investment activity. Given the delay between market reactions and measured changes in fundamentals, the proof of this decline will be more evident in the coming quarters.Download Mid-Atlantic Multifamily Market Report 1Q23 Download Baltimore Metro Area Multifamily Market Report 1Q23 Download Hampton Roads Multifamily Market Report 1Q23 Download Richmond Multifamily Market Report 1Q23 Download Washington Metro Multifamily Market Report 1Q23
- Market Reports >
- Mid-Atlantic Multifamily Market Reports
Mid-Atlantic Multifamily Market Reports
The Mid-Atlantic multifamily market exhibited modest softening in the first quarter of 2023. Despite the average price per unit increasing nearly 12% over the last year, in the Mid-Atlantic region, quarterly sales volume has seen a 39% decrease during the same period. Consistent with the national trend of slowing demand momentum, the Mid-Atlantic markets each saw a deceleration from the exceptional growth experienced in 2021. Rising interest rates and unsteady financial market conditions have slowed the market’s momentum.
Thank you for sharing your information with Newmark!