Photo: Josh Grenier/Flickr
As a general rule, cities with growing populations are also planning on growing their housing markets. Ten years ago, Washington, DC found itself in this situation, and the District’s Comprehensive Housing Strategy Task Force responded to the rising population with a new housing strategy. Over the last 10 years, though, DC’s population has continued to grow, but new housing has not kept pace.
The 2006 Task Force’s report “Homes for an Inclusive City” called on the mayor and City Council to double spending levels on housing from $3 billion to $6 billion over 15 years to maintain 30,000 affordable housing units and produce 19,000 new ones.
According to Payton Chung of Greater Greater Washington, this goal has not been met.
“Despite all the new construction over the past decade, including two building booms, DC is currently on track to miss its 2025 goal by 13 percent. Instead of building 2,855 units per year, DC’s averaged fewer than 2,500 each year over the past decade.”
This failure can be attributed to fallout from the 2008 housing crisis. Chung reports that building permits in DC fell by 81 percent from 2005 to 2008 and remained at low levels throughout 2010.
Despite this, DC remains a national hotspot for new home construction today. According to BuzzBuzzHome’s Market Snapshot, there are 8,667 total units currently under construction in DC, including 8,149 condos/apartments and 519 townhouses/houses. The average list price per square foot has grown 8 percent month-over-month to $343.82.
h/t to Greater Greater Washington