The DC Housing Market Continues to Surge in Price: Will It Stop?
Unlike other markets in the USA, the DC housing market is one that we can imagine will always be in demand in some way. Since this is the political seat of power in the USA, there will be a constant stream of people coming and going. From the residents of America’s most famous address to the senators, their staff, and the many diplomats who all need to come and work in DC, it makes for a very crowded market.
The market is crowded, but it also has a time limit on it. When it comes to the White House, obviously there is a chance that we might see a new President every four years. When it comes to the senators, we see them elected every six years. This means that it might be quite rare to find someone settling down in the district for a decade or more unless they have a comfortable seat, or work in a sector other than the immediate political stratospheres of the USA.
This constant stream and flow of individuals looking for a place to call home can play havoc with the housing market. There can always be new staff members coming into town to look for somewhere to stay, and it means that landlords can be tempted to put up rents in response to the demands. Buying isn’t always an option, and some people who know that their careers will take them out of DC in a few years simply might not want to buy a property either here or in a neighboring state.
If they do decide to buy, it is vital that they understand some of the pressures that can come with living in this historic part of the US. Depending on where you choose to live in DC, you might end up in a property that is older and requires more work than a new build. Having the right Washington DC homeowners insurance will be key. Even if you choose to rent rather than buy, you need to ensure that you have a policy that will help to protect your belongings no matter where you might be living.
The market in DC is currently swelling far beyond what we ever could have expected, and this will make it increasingly more difficult for newcomers to track down somewhere to live. While the official residences around the district will never be short of occupants, the other houses might struggle to find tenants and buyers if prices keep going up in the way that we currently see.
What might then happen is that we see the vast majority of people who need to work in DC – regardless of their occupation – decide to move to states like Delaware or Maryland rather than try to remain in the district. This might seem like a good idea, but it will obviously come with some consequences.
Namely, it will bring a tip with it. House prices in these states will begin to skyrocket, particularly in cities with an easy commute into DC. At the same time, DC itself might begin to empty as landlords struggle to find people to rent their homes. All that then happens is that you end up with the scales tipping back as people move into DC once more. A good balance needs to be established and maintained if this to and froing is to be stopped.
The housing market in DC is, unfortunately, likely to continue to grow in the future. However, there could be the potential for things to stabilize at some point. With this in mind, we could see the DC market level out somewhat. Simply based on the nature of the district, this is never going to be an affordable place to live. However, it does not mean that we have to see crazy runaway prices in place for homeowners and renters alike.