Growing population could put strain on DC housing market
A strong jobs sector and desirable social scene have helped make the District one of the fastest growing metros in the country. New residents have flocked to the area in recent years, which has helped the city expand its tax base, supplement its workforce and further attract new revenue drivers, like the tech sector. The fast growth has also affected the number of homes for sale in Washington, DC, as the city's stock of for-sale houses has showed signs of keeping up with growing demand.
According to Greater Greater Washington, a website devoted to issues related to the city's livability and economy, the region has seen incredible growth in the last few decades, which is threatening to deplete the already shrinking supply of for-sale homes. The Washington region added 2.4 million residents between 1970 and 2010. This influx unsurprisingly put a strain on the housing inventory, which was amplified because household sizes decreased and and more people began living alone during the same period.
Additionally, because many of these new residents came to DC for a job, the homes in close proximity to many of the city's employment centers experienced even greater demand.
To help balance population growth with housing need, many developers started converting apartments and other spaces into homes, the source reports. This helped slightly but was ultimately not enough to keep supply and demand equal.
In fact, job growth - especially in high-income sectors like computer programming and engineering - has risen more rapidly in the last decade. According to the Atlantic Cities, the Washington region had the sixth highest rate of economic growth between 2001 and 2010 in the country.
As the District's housing market continues to improve more quickly than almost any other region in the country, many experts believe that prices will continue to rise. In fact, according to the Washington Business Journal, home sales reached their highest August level in three years. Demand for homes, especially those in the inner ring of suburbs, is rising. In many of these areas, home prices are back to their pre-recession peak, according to Greater Greater Washington.
If the city's population continues to grow at this pace, and the housing supply continues to diminish, finding the perfect home could become increasingly difficult. People serious about finding their dream home in the District may want to start focusing on their search in the near future.