Question: Have rental prices in Arlington followed a similar trend as the ownership market?
Answer: The rental market for apartments was hit hard during the pandemic with rental rates dropping roughly 15%-20% in Arlington and the DC Metro, but rents quickly climbed back up last year and seem to be stabilizing.
As you would expect, the pandemic had the opposite effect on the detached and townhouse rental markets, sending those prices up, but at a lower rate than the appreciation we’ve seen in the cost to buy.
Below, I’ve compiled rental data from the MLS in Arlington over the last five years. Note that very few commercial apartment buildings list in the MLS so this data is limited to non-commercially owned rentals (for apartments, that is mostly individually owned condos).
Further, it’s difficult to say what percentage of non-commercially owned properties go through the MLS for rent but I would guess that it’s less than half of rented apartments, but likely a majority if detached and townhouse properties. Despite the limited data set, we still have more than enough information available through the MLS to generate outputs that represent the true rental market.
Here are some highlights from the data table:
- The total number of rentals that came to market in 2021 increased sharply over previous years with 48.8% more apartment rentals and 24.9% more detached/townhouse rentals, compared to the averages over the previous four years.
- The increase in rent for 3-4 bedroom and 5+ bedroom single-family homes from 2019-2021 was 6% and 12.7%, respectively
- In 2021, the average tenant for a single-family or townhouse paid at or over the asking price
- Rental prices for 3-4 bedroom townhouses is nearly identical to those of 3-4 bedroom detached homes
- The average rent for a one-bedroom and two-bedroom condo is down from 2019 highs by 5.7% and 3.2%, respectively
If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at Eli@EliResidential.com.