3 Reasons Why D.C. Real Estate is a Smart Investment
The seat of U.S. political power is growing into an even mightier real estate market
Washington, D.C. is unique among America's property markets. At its heart is the District of Columbia, the seat of power in the U.S., if not the world. That alone makes the area a highly attractive draw for power brokers looking to invest in luxury real estate.
D.C.'s metro area real estate market, however, is more than just its congressionally-granted 68 square miles.
The broader metropolitan area encompasses Arlington and Alexandria, Virginia, as well as portions of Maryland, including Montgomery and Prince George's counties. It's a diverse area featuring a number of distinct real estate opportunities for both future homeowners and investors.
Here are three reasons why D.C. and its surrounding markets are a smart investment.
The Amazon Effect
That's the term that online real estate firm Redfin is using to describe the future impact of Amazon choosing Crystal City, Virginia as its home for HQ2. Already an active economic hub, the city of just over 22,000 residents (60,000 workers commute in every weekday) is set to blossom into a technology and retail power.
Adjacent to both Arlington and Alexandria and just across the Potomac from D.C., the new headquarters will spur economic growth both directly and indirectly across the entire region. The area’s newfound desirability is only expected to increase both popularity and prices. Now is an excellent time to buy-in before the market truly starts to heat up.
The Market is Still in Ramp Up Mode
But we're not there yet. Even with the economic engine of Amazon coming to town, the impact will be gradual. It's expected to take a decade or so before the new HQ2 reaches the size and scope of Amazon's main Seattle campus. Within the communities of the immediate D.C. metro area, neighboring southern Maryland, and the farther reaches of northern Virginia, deals can be found.
Of course, the Arlington and Alexandria markets are already heating up, as evidenced by the Redfin report. But with the new workforce expected to be fairly well dispersed across the region, investing now in desirable areas of Prince George's and Montgomery counties in Maryland, as well as Prince William and Loudoun counties in Virginia, could pay huge dividends in the future.
A Consistent Performer
In the three years prior to a 2017 PropertyShark Report, Washington, D.C. placed second to New York (the perennial leader in the East Coast category) in million-dollar home sales.
In 2017, a report from Zillow showed a quarter of D.C. homes sell for over asking price, which was a nearly 7% increase from 2012.
The 2018 and 2019 Emerging Trends in Real Estate reports from PriceWaterhouseCoopers reflect the D.C. and Northern Virginia markets as desirable places to buy, with positive returns highly likely.
Note that the majority of these stats were compiled before the HQ2 announcement, owing to the region's already robust educational, cultural, political, and economic identity. Even as other areas of the U.S. ebb and flow, the Washington, D.C. real estate market has proven to be a reliable and rewarding place to put your money.
Ready to invest in that perfect D.C. area home? Work with us. It would be our pleasure to serve as your D.C. metro area real estate agents and help you turn homeownership into an enduring investment.
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