Location, location, location – this is an oft-lauded maxim in real estate and has perhaps a substantial effect on home value and desirability. And Washington DC, the nation’s capital, as one of the most sought-after locations in the U.S., provides a plethora of opportunities for luxury property investments. Investors can expect great returns on luxury homes in DC.
The seat of political power
The District of Columbia is home to the White House, the U.S. Capitol, Senate and congressional offices, and the departments of Justice, Labor, Education, Agriculture, and Defense, to name a few. It’s the prime location for investors catering to influential individuals, defense contractors, high net-worth entrepreneurs, and others who will consider no less than luxury dwellings.
The thriving community
DC’s population is rising by 0.59 percent a year. And millennials looking to establish their career at the epicenter of the nation’s power make up a large part of new residents every year. As of 2020, the cost-of-living adjusted median income in the metro area for this age group was $50,934. DC ranked 6th among the best-paying large metros for millennials.
The increased housing opportunities
As of January 2021, the number of multi-family housing permits the city government had issued surpassed expectations, giving investors more opportunities and options for a real estate venture.
The dramatic drop in rental vacancies
Now that the economy is recovering, rental vacancies have plummeted to only around 5% by end of 2021. Rental rates are recovering from the lows of the pandemic season, registering a 9.7% increase in the same year. Landlords can look forward to a profitable landscape in the metro area now that the pandemic appears at an end.
Unemployment decreased sharply
Statistics show that the unemployment rate fell below six percent in 2021, with DC’s job payrolls registering a yearly growth rate of 3.5 percent, translating to higher purchasing power – a green light for those who want to invest in luxury properties.
The increase in median listing home price increased
February 2022 showed a steady rise in median listing home price. The $590K median listing home price represents a 2.6 percent annual growth, auguring well for home value appreciation in the city.
The bounce back in Architectural billings
Architectural billings, a measure of financial health and greater business confidence, has grown. The city has started to reopen after the pandemic, and inquiries about new projects and the value of novel design contracts are substantial.
The presence of good schools
The weekend getaways
DC is surrounded by places that are great for short weekend trips. The list includes history-rich Baltimore, Richmond, and Annapolis. Virginia’s wineries, Delaware’s beaches, and West Virginia’s forests are highly-rated points of interest, making DC a choice location for short-term rentals.
The wide choice of amenities
If you are considering investing in luxury property in Washington DC, Heller Coley Reed of Long & Foster, the luxury real estate experts, can help you with that. Call 240.800.5155 or email hellercoleyreed(at)gmail(dotted)com.