District of Columbia Housing Market Vitality

Market Rank

thirty seven

District of Columbia metro area house prices are forecasted to track the national market over the next twelve months. Currently, the market is underperforming the overall U.S. market. Compared to 12-months ago, District of Columbia’s housing market has strengthened. Current local economic conditions support an estimated 4% increase in house prices over the next twelve months. Based on the housing market vitality of the one metro housing market which comprises it, District of Columbia’s housing market ranks thirty seventh amongst all states and D.C. The three-month outlook is negative.

Housing Market Vitality

Housing Market Vitality summarizes the impact of economic conditions on house prices. A value of 100 corresponds to conditions supporting current price appreciation; values less than 100 correspond to a dampening effect and values greater than 100 indicate a positive impact on house prices. A housing market vitality value can be interpreted as a growth rate. Hence, a reading of 105.8 can be interpreted as a 5.8% annualized increase in house prices.

District of Columbia Metro Housing Markets

District of Columbia is comprised of one metro housing markets that account for nearly 100% of the state’s population. The DC metro housing markets are unique in their demographics and local economies and exhibit trends that are distinct from the national and state narrative. Each metro market presents its own unique opportunity.

METRO AREA SITUATION OUTLOOK US METRO RANK (/402)
Washington-Arlington-Alexandria, DC-VA-MD-WV Underperforming Negative 292

Industry Specialization

District of Columbia’s state economy is specialized in Pro Bus svcs, Information, and Leisure Hosp. Mining, Manufacturing, and Trade Trans Util industry sectors are less important to the state economy compared to the national economy.

Industry specialization helps explain the differing impact of industry trends on local economies in contrast to industry composition which describes the structure of the economy. A Specialization Index value greater than 100 corresponds to the sector having a greater share of the state economy than it does of the national economy. Sectors with a Specialization Index greater than 120 characterize the local economy.

Demographics

Compared to the U.S., there is a lower incidence of poverty amongst District of Columbia residents and they have greater purchasing power. There are more high school graduates and a larger proportion of the population is college educated. District of Columbia’s population is comparatively more diverse than the overall U.S. population.

A Demographics Index value greater than 100 corresponds to the factor being more intense in the state versus the national average. Characteristics of the local population is a longer-term factor that influences the housing market.

Data through November 2020