Washington, D.C.

The ongoing economic uncertainty resulting from the pandemic and political instability could have an impact on the Washington DC housing market in 2023.

While the city has a strong job market and economy, any external shocks to the wider economy could have an impact on the housing market. All eyes have been on the Federal Reserve as the unprecedented pace of their interest rate hikes attempt to rein in inflation. These historic increases have created turmoil for lenders, especially among local banks, which further complicates the already challenging housing market. The current market climate characterized by increased costs of borrowing, large concessions, and record-high vacancies has created challenges for owners, who are finding it increasingly difficult to sell or refinance their properties. While D.C. didn’t experience large rent decreases in recent years, the market did experience some of the highest concession packages in the country. Inflation has also significantly impacted commodity and construction prices. Overall, the Washington DC housing market is expected to remain strong in 2023, and the recent funding for affordable housing and infrastructure projects also provides a potential avenue for socially responsible investment opportunities.

* Other structures include religious buildings, amusement, government communications, and public recreation projects.