Washington Housing market
Mashvisor Home

Discover

Washington

Washington DC is the capital city of the United States, located between the states of Maryland and Virginia on the northern shore of the Potomac River. With an estimated population of 711,500, Washington DC is the 20th most populous city in the US. The Washington metropolitan area is home to over 6.2 million people, making it the 6th largest metro area in the country. The DC real estate market benefits from the positive annual net migration the city experiences, which contributes to a high population growth rate. With more than 60% of the city’s residents living in rental properties rather than owning a home (according to NeighborhoodScout), Washington DC rental properties enjoy particularly high demand and occupancy rates. 

Being the seat of the US federal government, the Capital City boasts a strong and stable economy which makes for a high employment growth rate. All three branches of the federal government, the White House, the Supreme Court, and the Capitol Building are located in the city. Much of the local labor force works in federal civil service jobs, with approximately 25% of DC employees working at a federal government agency. DC hosts 176 foreign embassies, as well as the headquarters of many international organizations such as the World Bank, the International Monetary Fund, and the Pan American Health Organisation. Many other organisations such as national trade unions, lobbying groups, and various professional associations have their headquarters in and around the city. 

Tourism is the second largest industry in Washington DC. Home to the nation’s most important monuments and museums, DC is the 5th most visited city in the US. Nearly 22 million domestic tourists visited the city in 2018, generating an estimated $7.8 billion for the local economy. DC is also a center for higher education, with a number of higher learning institutions located there, including Georgetown University, George Washington University, and the American University. Other leading industries contributing to the city’s economy include healthcare, international business, public policy, scientific research, telecommunications, technology, and hospitality. Fortune Magazine’s 2018 list of the 500 largest US companies by revenue includes 15 that are based in the Washington DC area.  


The Washington DC real estate market was named as the 18th most important US Market to Watch by PWC in its annual Emerging Trends in Real Estate: United States and Canada 2019 report. Washington DC’s position as the nation’s capital offers long-term stability and security for real estate investors, making the DC housing market one of the nation’s most desirable for real estate investment. 

Washington Realtors and Real Estate Agents


Washington  Real Estate Investment Performance
Facts and Market Trends in Washington
Homes For Sale
1,254
Airbnb Properties
2,649
Rental Properties
4,791
Traditional Vacancy rate
6.80%
Airbnb Occupancy Rate
66.60%
Mashmeter
69.21%
Median Price
$676,001
Median Rent Price
$2,925
Price/sqft
$497
Median Days on Market
62
Price to Rent Ratio
20.9
Average Cap Rate
Airbnb
2.04%
Traditional
1.96%
Average Rental Income
Airbnb
$3,071
Traditional
$2,688
 
Median Household Income
$70,979
Population
677,427
Transportation in Washington
77 / 100
Very Walkable
71 / 100
Excellent Transit
67 / 100
Bikeable
Washington  Rent Prices
RENTAL STRATEGY STUDIOS 1 ROOM 2 ROOMS 3 ROOMS 4 ROOMS
Airbnb$1,960$2,081$2,683$3,620$3,859
Traditional$2,090$1,522$2,208$3,107$3,480
Washington, DC - Homes for Sale - Newly Listed
Investment Properties for Sale
$425,000
MLS DCDC441222
50 CRITTENDEN ST NE
Washington, DC 20011
Fort Totten
Townhouse
3 beds2 baths0 sq.ft.
CAP RATE
Trad. 3.49%Airbnb 2.32%
Investment Properties for Sale
$450,000
MLS DCDC441642
2500 Q ST NW #113
Washington, DC 20007
West End
Condo/Coop
1 beds1 baths0 sq.ft.
CAP RATE
Trad. 2.01%Airbnb 3.98%
Investment Properties for Sale
$600,000
MLS DCDC440108
409 MISSOURI AVE NW
Washington, DC 20011
Brightwood Park
Townhouse
3 beds4 baths0 sq.ft.
CAP RATE
Trad. 1.92%Airbnb 0.67%
Investment Properties for Sale
$575,000
MLS DCDC442518
3309 E STREET SE
Washington, DC 20019
Greenway
Single Family Residential
3 beds3 baths1,444 sq.ft.
CAP RATE
Trad. 1.00%Airbnb 1.22%
Top Performing Washington Properties
Investment Properties for Sale
$100,000
MLS DCDC438632
345 KENTUCKY AVENUE SE
Washington, DC 20003
Barney Circle
Townhouse
1 beds1 baths832 sq.ft.
CAP RATE
Trad. 6.78%Airbnb 7.99%
Investment Properties for Sale
$210,000
MLS DCDC435706
1301 BARNABY TERRACE SE
Washington, DC 20032
Washington Highlands
Townhouse
3 beds3 baths1,116 sq.ft.
CAP RATE
Trad. 4.80%Airbnb 7.74%
Investment Properties for Sale
$249,900
MLS DCDC435120
3925 DAVIS PLACE NW #B1
Washington, DC 20007
Glover Park
Condo/Coop
1 beds1 baths611 sq.ft.
CAP RATE
Trad. 3.34%Airbnb 7.67%
Investment Properties for Sale
$100,000
MLS DCDC438974
921 INGRAHAM STREET NW
Washington, DC 20011
Brightwood Park
Townhouse
1 beds1 baths2,130 sq.ft.
CAP RATE
Trad. 7.40%Airbnb 7.66%
Recently Sold Homes in Washington, DC
Investment Properties for Sale
$404,372
MLS
5710 EASTERN AVE NE
Washington, DC 20011
Riggs Park
Single Family Residential
3 beds1 baths1,024 sq.ft.
CAP RATE
Trad. 2.75%Airbnb 3.28%
Investment Properties for Sale
$975,000
MLS DCDC436032
3759 BENTON ST NW
Washington, DC 20007
Glover Park
Townhouse
4 beds2 baths0 sq.ft.
CAP RATE
Trad. 1.45%Airbnb 2.56%
Investment Properties for Sale
$925,000
MLS DCDC438510
4517 WINDOM PL NW
Washington, DC 20016
American University Park
Single Family Residential
3 beds2 baths0 sq.ft.
CAP RATE
Trad. 1.97%Airbnb 0.78%
Investment Properties for Sale
$310,000
MLS DCDC439014
1601 18TH ST NW #817
Washington, DC 20009
Dupont Circle
Condo/Coop
0 beds1 baths0 sq.ft.
CAP RATE
Trad. 2.07%Airbnb 3.75%
Property Value Changes and Real Estate Appreciation in the Washington Housing Market

The Washington DC real estate market has experienced some of the highest real estate appreciation rates in the US. Since Q1 of 2000, DC properties have experienced a total appreciation of 299.65% according to NeighborhoodScout, which is an average annual home appreciation rate of 7.56%. However, it seems that home value growth is slowing down as Zillow reports that DC property values have gone up only by 0.5% over the past year. This is a good sign for those considering buying an investment property in the capital as price growth will likely slow down as well.


The Washington DC housing market is currently a hot seller’s market. Housing supply is low, while demand from homebuyers and real estate investors continues to rise as the population grows. This situation enables DC real estate investors to enjoy high real estate appreciation.

Washington, DC Top Multi Family Homes
Investment Properties for Sale
$450,000
MLS DCDC424904
2816 Q STREET SE
Washington, DC 20020
Twining
Multi Family
0 beds0 baths1,296 sq.ft.
CAP RATE
Trad. 2.58%Airbnb N/A
Investment Properties for Sale
$370,000
MLS DCDC432964
4201 EADS STREET NE
Washington, DC 20019
Mahaning Heights
Multi Family
0 beds0 baths1,190 sq.ft.
CAP RATE
Trad. 2.47%Airbnb N/A
Investment Properties for Sale
$500,000
MLS DCDC434168
123 JOLIET STREET SW
Washington, DC 20032
Bellevue
Multi Family
0 beds0 baths1,940 sq.ft.
CAP RATE
Trad. 2.37%Airbnb N/A
Investment Properties for Sale
$849,000
MLS DCDC435760
4118 ELLICOTT ST NW
Washington, DC 20016
Tenleytown
Multi Family
0 beds0 baths1,152 sq.ft.
CAP RATE
Trad. 1.87%Airbnb N/A
Homes Below Median Price in the Washington, DC Real Estate Market
Investment Properties for Sale
$100,000
MLS DCDC438632
345 KENTUCKY AVENUE SE
Washington, DC 20003
Barney Circle
Townhouse
1 beds1 baths832 sq.ft.
CAP RATE
Trad. 6.78%Airbnb 7.99%
Investment Properties for Sale
$210,000
MLS DCDC435706
1301 BARNABY TERRACE SE
Washington, DC 20032
Washington Highlands
Townhouse
3 beds3 baths1,116 sq.ft.
CAP RATE
Trad. 4.80%Airbnb 7.74%
Investment Properties for Sale
$249,900
MLS DCDC435120
3925 DAVIS PLACE NW #B1
Washington, DC 20007
Glover Park
Condo/Coop
1 beds1 baths611 sq.ft.
CAP RATE
Trad. 3.34%Airbnb 7.67%
Investment Properties for Sale
$100,000
MLS DCDC438974
921 INGRAHAM STREET NW
Washington, DC 20011
Brightwood Park
Townhouse
1 beds1 baths2,130 sq.ft.
CAP RATE
Trad. 7.40%Airbnb 7.66%
Washington Airbnb Growth and Regulations

As the Capital City is a very popular domestic and international tourist destination, the Airbnb and vacation rental industry has experienced major growth in the city in recent years. In 2018, a total of 517,500 Airbnb guests stayed at DC short-term rentals, bringing a total revenue of $96 million to the local Airbnb hosts.

In November 2018, Washington DC passed a new law setting restrictions on short-term rentals starting October 1, 2019. Under the new law, Airbnb DC hosts may only rent out their primary residence as short-term rentals, meaning that they are allowed to rent out a bedroom, basement or carriage house without limit, provided they are living in the home at the time of the guests’ stay. In the case that hosts are not present at the time of renting, the law imposes a 90-day annual cap on short-term rentals. The use of second or third non-owner occupied homes for short-term rentals is banned in the city.

In order to operate a short-term rental, Airbnb DC hosts are required to obtain a license from the city. They must also collect a 14.95% city sales tax on accommodations from guests and remit it to tax authorities. The Airbnb platform, as well as HomeAway, both collect this tax on behalf of their operators. Hosts who do not use these platforms must collect and remit the sales taxes themselves. 

There are other operational requirements for short-term rental hosts in Washington DC, such as having liability insurance and installing smoke detectors in the rental property. Anyone operating illegal short-term rentals in violation of DC Airbnb regulations risks facing civil penalties.

Washington, DC Top Airbnb Homes
Washington Airbnb
$88 per night
Entire home/apt · 1 bed
Efficiency suite in Capitol Hill
764
Washington Airbnb
$81 per night
Entire home/apt · 1 bed
Cozy Cabin in the City on Cap Hill
603
Washington Airbnb
$124 per night
Entire home/apt · 2 beds
Downtown DC Private Carriage House
577
Washington Airbnb
$114 per night
Entire home/apt · 1 bed
Garden Suite Efficiency
522
Washington, DC Homes for Rent
Investment Properties for Sale
$3,300
MLS DCDC442626
4931 7TH STREET NW
Washington, DC
Petworth
Townhouse
3 beds4 baths1,659 sq.ft.
Investment Properties for Sale
$1,500
MLS DCDC442494
Investment Properties for Sale
$1,895
MLS DCDC442642
Investment Properties for Sale
$3,500
MLS DCDC442586
911 2ND STREET NE #503
Washington, DC
NoMa
Apartment
2 beds2 baths1,058 sq.ft.
Washington, DC Open Houses
Investment Properties for Sale
Open 1 PM to 4 PM
$1,149,000
MLS DCDC442074
608 4TH PL SW
Washington, DC 20024
Southwest Federal Center
Townhouse
4 beds4 baths0 sq.ft.
CAP RATE
Trad. 1.89%Airbnb 3.81%
Investment Properties for Sale
Open 1:30 PM to 4 PM
$233,333
MLS DCDC439496
520 N ST SW #127
Washington, DC 20024
National Mall - West Potomac Park
Condo/Coop
0 beds1 baths0 sq.ft.
CAP RATE
Trad. 3.34%Airbnb 5.93%
Investment Properties for Sale
Open 12 PM to 3 PM
$749,900
MLS DCDC429070
1209 OATES STREET NE #A
Washington, DC 20002
Trinidad
Condo/Coop
3 beds3 baths1,088 sq.ft.
CAP RATE
Trad. 0.90%Airbnb 0.77%
Investment Properties for Sale
Open 12 PM to 3 PM
$499,900
MLS DCDC429512
1209 OATES STREET NE #B
Washington, DC 20002
Trinidad
Condo/Coop
1 beds2 baths1,088 sq.ft.
CAP RATE
Trad. -1.29%Airbnb -1.21%
Best Washington Neighborhoods for Buying Investment Property
86%
Mashmeter
property price
$749,900
Median
cap rate
3.44%
Traditional
6.97%
Airbnb
rental income
$2,151
Traditional
$4,357
Airbnb
homes for sale
9
occupancy rate
72%
Airbnb
72%
Mashmeter
property price
$879,900
Median
cap rate
3.81%
Traditional
5.32%
Airbnb
rental income
$2,796
Traditional
$3,899
Airbnb
homes for sale
11
occupancy rate
72%
Airbnb
86%
Mashmeter
property price
$729,900
Median
cap rate
4.50%
Traditional
7.33%
Airbnb
rental income
$2,739
Traditional
$4,459
Airbnb
homes for sale
5
occupancy rate
71%
Airbnb
86%
Mashmeter
property price
$535,000
Median
cap rate
6.79%
Traditional
10.11%
Airbnb
rental income
$3,028
Traditional
$4,507
Airbnb
homes for sale
2
occupancy rate
73%
Airbnb
84%
Mashmeter
property price
$729,750
Median
cap rate
5.19%
Traditional
7.92%
Airbnb
rental income
$3,154
Traditional
$4,815
Airbnb
homes for sale
2
occupancy rate
72%
Airbnb
Related Articles
All Washington Neighborhoods