Across the country, a shift in lifestyle choices is driving the trend toward vertical living in urban areas.
In addition, people are getting married and starting families later in life, so the need for the larger, suburban house with a yard for the kids doesn’t arise until they are older. Living in an apartment or condominium in the city is feasible for many more people, and for much longer, than it was in the past.
The reverse is also occurring, with empty-nesters and retirees moving into the city for its walkability and easy access to the cultural amenities the District has to offer, plus dining and entertainment.
In response to increased demand for the clutter-free, highly mobile lifestyle desired by both millennials and retirees, developers are building more multifamily buildings in the city. They are trying to appeal to the majority of buyers — including first-timers — in the city, especially from a price-point perspective. That means they are building spaces that still have an affordable monthly payment, but also check the box on size.
With properties that are for sale right now, we are seeing spaces that are a little smaller than what we’ve seen in the past in Washington, but not drastically so. From a rental perspective, apartment units are smaller — about 10 to 15 percent smaller than a similar condo.
Developers are also moving forward with less space in the unit and greater focus on the building amenities and shared public spaces. The thought is that residents are spending less time in their apartments and more time enjoying amenities such as roof decks, pools and theater rooms.
Among renters, these types of amenities are now expected and part of the appeal of vertical living. The buildings have spacious club rooms, lobbies with espresso bars, fully staffed front desks, resident concierge, pet runs and washing stations, common-area kitchens and dining spaces.
For buyers, the condo fee is considered part of the monthly payment, which they generally want to keep as low as possible. The size of the building drives that, so it’s generally larger properties with many units (60+) where you’re seeing more amenities like a front desk, for example. In general, a majority of these properties will have a common-area roof deck and additional storage.
The trend toward vertical living in the Washington area means that we will continue to see more rental units being built.
On the flip side, that also means that we remain underserved from a for-sale inventory perspective. In 2006, 5,000 for-sale units were built; in 2017, 1,400 are to be built. We’re also seeing more people moving to the Washington market now than ever before, and that will probably result in the development of new neighborhoods in the city, such as the popular Southwest Waterfront neighborhood.
Cindy Ariosa, chairman of Rockville-based multiple listing service MRIS, writes an occasional column on the Washington-area housing market.
