RENTAL MARKET IN
NORTHERN VIRGINIA
Changing Needs and Priorities
Before the pandemic, neighborhoods in D.C. were very popular and expensive among people who worked in the city and enjoyed the urban lifestyle of using public transportation, highly walkable areas and living in a densely populated community. Then in 2020, the pandemic of course forced a major shift in the trends.
Many offices were closed and employees were forced to work from home (WFH) from their laptops. While many like the additional freedom that comes with the WFH lifestyle, being in a small square footage apartment all day was no longer a pleasant experience.
Workers seeking more space, such as a dedicated home office, began moving from the city out to the suburbs. People also wanted more space to facilitate social distancing needs and were less likely to want to rely on public transportation.
These changing needs and priorities led to skyrocketing rents in the suburbs, most notably in places such as Fairfax, Gainesville, Haymarket, Aldie, and Ashburn. Rents steadily rose in these markets throughout the pandemic as people sought roomier homes and as of yet show no signs of coming back down.
About Rental Supply vs. Demand
in Northern Virginia
Rent prices not only in Northern Virginia, but also nationwide, have risen dramatically during the past few years fueled by the Covid 19 pandemic and changing economic conditions. We are all well aware that the pandemic shook up just about everything in our lives, but understanding a few key points about the rental property market in Northern Virginia is crucial for someone looking to be a successful real estate investor.
Renting Became Advantageous
Since many of these moves to the suburbs came very suddenly and during a period of unprecedented uncertainty, renting actually became advantageous to owning. People had no idea how long the pandemic would last or whether or not they would need to return to the office sooner than expected. All of these unknowns made renting popular as people wanted to stay flexible and keep their options open. Of course many people did buy, which only caused the home prices to skyrocket to unprecedented levels as well, and the high prices and limited supply only made renting that much more popular.
Supply to Remain Tight
Now that many have made the suburbs their new permanent homes, the supply for those wishing to buy a new home is quite limited. Prices skyrocketed and now building materials are among the many items caught up in the supply shortage caused by two years of shutdowns. Building new homes or remodeling homes in this environment is incredibly difficult and expensive.
In addition to the construction material supply constraints, rising interest rates are making building much less affordable as well. No one is quite sure how long this will last, but the fact is, there is unlikely to be a major building boom anytime soon to alleviate the high rents in the suburbs.
Looking Ahead
We have just been through perhaps the biggest real estate changes of our lives. Rents and home prices have skyrocketed in many areas due to changing needs from the pandemic. Looking ahead, many areas will need to build more homes to accommodate the new residents who have flocked to the suburbs seeking larger homes, more space and better schools.
Building shortages and rising rates will slow this process down significantly, meaning high rents and uncertainty will remain for the foreseeable future.
If you are a real estate investor, or thinking of getting involved in real estate, this does present a unique and possibly a very profitable opportunity. If you are a property owner in Northern Virginia, having a property manager to help you maximize your return on investment is more crucial now than ever.
Property Management in 2024 and Beyond
We have been managing properties in Northern Virginia for a long time and have many processes in place to make sure our clients receive top dollar for their properties. Now more than ever it is important to work with a knowledgeable property manager who is on top of these changing market conditions on a daily basis. We can make sure that your property gets rented out quickly and at the right price, you do not want to leave money on the table by having your property sit vacant for too long, or by renting it out at less than current market rates. We keep meticulous track of rent data throughout the region and will get your property rented out quickly and at a fair price.
Another important part of the service we offer is screening tenants before a lease is offered. Properties often will get dozens inquiries from potential tenants. Screening tenants quickly and carefully, while following all applicable laws and regulations can be a cumbersome task, but again we have developed a routine where we can get this done very efficiently.
Finally, due to the many shortages of construction materials, maintenance and repairs on properties can be expensive and take a long time for many property owners. We have long standing professional relationships with dozens of contractors and vendors in the area and are able to negotiate reasonable prices and shorter timelines. All of this adds up to you being able to get your properties rented out quicker and at higher rates.
Now more than ever it is important that property owners in Northern Virginia have quality property management. Give us a call and let’s discuss how we can help or schedule a complimentary consultation today.
7007 Kilworth Lane
Springfield, VA 22151
1200 Prince Street
Alexandria, VA 22314
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