Rental rates in Bethesda are still rising, though not by as much as earlier this year.
The third quarter report from real estate analyst Delta Associates says rents in Class A apartment buildings in Bethesda increased by 0.3 percent over the summer, according to Urban Turf. The same report shows rates in most other areas in and around D.C. are falling.
Rents in some areas, including Silver Spring, are falling drastically. The report says rental rates fell 7.4 percent there in the third quarter. Class A apartments are defined as large buildings, typically built after 1991 with full amenity packages.
Bethesda’s not-quite-there-yet surge in rental units could have a big affect on rental rates. But for now, it appears supply has not quite caught up to demand. Delta Associates’ second quarter report showed a 3.8 percent increase in rates. The same report showed the average rate for the entire DC area dropped on an annual basis for the first time since 2009.
Rates for new Class A leases have slipped by 1.1 percent over the last year, according to the third quarter report.
To give these percentages some real meaning, Class A apartments in the Upper NW sub-market now rent for $2,622 a month on average compared to $2,798 last year; in Silver Spring, apartments rent for $1,900 currently versus $2,051 in the third quarter of 2012. (The rents are a weighted average of new studios, one-bedrooms and two-bedrooms in the city.)
Bethesda’s average is $2,620 a month.
Chart via Urban Turf/Delta Associates