Alexandria, Arlington Remain Top Places For Apartment Construction

ALEXANDRIA, VA — The construction boom continues in Alexandria and Arlington as the Northern Virginia localities remain two of the DC region's top places for apartment construction.

RentCafe analyzed apartment growth in cities and major metropolitan regions in its annual Apartment Construction Report. Washington, DC led locations in the region with an anticipated 5,776 new apartments, followed by Arlington County with 2,811 and Alexandria with 836.

Both Arlington and Alexandria are high demand places for renters. Arlington was recently named the top in-demand place for renters in the country for a second month, according to RentCafe.

"The first reasons for Arlington and Alexandria’s attractiveness are the strong job market and young professionals renting longer, mainly due to high home prices and growing mortgage rates," said Joanna Truscan, a spokesperson for RentCafe.

High-income renters have grown in numbers, contributing to the demand for apartments. Truscan said some renter households with $150,000 or more income may choose to rent instead of buy homes. Over 25 percent of Arlington renter households earn $150,000 or more, while 17 percent of Alexandria and DC renter households have the same income level.

The DC region is one of the top contributors to the post-pandemic construction boom. From 2020 to 2022, DC has added 17,300 units, while Arlington has added 4,609 and Alexandria contributed 3,978 units.

"Work-from-home prompted renters to form their own households to gain more living space for offices, children and pets," said Doug Ressler, manager of business intelligence at Yardi Matrix.

RentCafe's apartment construction analysis is based on Yardi Matrix data. Estimated completions are based on when certificates of occupancy are issued for properties. RentCafe notes that projections may change depending on various factors.

Overall in the U.S., 1.2 million new apartments came online in the U.S. during the last three years, with the Dallas metro region contributing the most — 76,660 units. About two-thirds of apartment construction growth comes from 20 rapidly growing metro areas.

An estimated 460,860 new apartments are expected to be ready in 2023, led by the New York metro with 33,000. The Washington, DC region is ninth among U.S. metro regions for anticipated new apartments in 2023 — 13,189 units.

Overall, RentCafe expects a high level of apartment constructions to continue until 2025, when "current economic headwinds" could start to impact future constructions.