The apartment market in the Washington area has become one of the tightest in the country, and rents are rising briskly as some affluent residents decide to rent rather than buy in what they fear is an inflated real estate market.

Buyers find it just not reasonable to buy. In suburban Maryland, rents for luxury high-rise apartments rose 11%. Experts say prices would rise even faster without the additional condos.

Economist Gregory H. Leisch, chief executive of Delta Associates, said that even if rents are expected to rise 5 to 9% annually over the next few years. More than a half-dozen projects have recently shifted from proposed condo complexes to rental apartments.

The going-rental option is under consideration by the developers of a 183-unit complex at the site of the old National Institute of Dry Cleaning, and a 325-unit project called Cameron House, both in Silver Spring.

Across the Washington area, apartment vacancy rates have tightened, and average rents are up from last year. Stephen Muller, president of Union Realty Partners Inc., which is building the 183-unit project, said he began considering the shift after a well-heeled family rented a single-family house he owns, saying they did not think it was a wise time to buy.

According to Delta Associates, there are some 26,600 condo units being marketed in the Washington region, up from about 23,100 in the same month last year.

By M. Sese
http://realestatepress.org