DC’s Hottest Neighborhoods Charge Highest Rents, Continue to Grow
Developers continue to build in DC’s most sought after neighborhoods. (“Construction” is by luisgomezphotos in the Borderstan flickr pool)
From Rachel Nania. Check out her blog, Sear, Simmer & Stir. Follow Nania on Twitter @rnania, email her at rachel[AT]borderstan.com
The area’s escalating rent prices are not new news for Borderstan residents. Yet DC’s rising cost of living continues to make the headlines in publications such s The Huffington Post, The New York Times, Bloomberg Business Week and now, The Washington Post. (We even wrote a piece on the topic this summer – see “DC rent prices: How high is too high?“).
Erica Champion’s recent article in The Post, “DC’s hottest neighborhoods pull in region’s highest rent averages” discusses the District’s cost of living dilemma with regard to the city’s most popular living destinations.
“If ‘Beverly Hills 90210’ helped crystallize the notion that addresses do matter, stratifying the Washington area to analyze average apartment rent at the zip code level illuminates that fact,” wrote Champion in September.
DC’s Area’s Expensive Zip Codes
So where are the most expensive rental areas in DC?
On the list of the DC Metro area’s top 10 are zip codes 20008, 20009, 20001 and 20005, all of which encompass the entire Borderstan area (and its surrounding neighborhoods), from Dupont Circle to U Street and Shaw, and even Logan Circle, Columbia Heights and Adams Morgan. (See Census Frenzy: Ward 2 Population Up 16%, Ward 1 Up 4% and DC’s Population Boom.)
According to the article, most apartments located in these zip codes charge more than $2,000 in monthly rent, requiring a household income of at least $75,000 (43 percent more than the median renter household income in the region).
But despite high price tags, demand for apartment units in the region’s most sought after neighborhoods remains high, with an average occupancy rate of more than 96 percent, which is precisely why developers continue to build in these areas.
Champion attributes the demand in these areas to Metro access; a plethora of bars, restaurants and nightlife options; and retail establishments that cater to young affluent professionals.
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