This recurring sponsored column is written by Eli Tucker, an Arlington-based real estate agent and resident. If you would like to work with Eli and his team in Northern Virginia and the greater DC Metro area, you can reach him directly at Eli@EliResidential.com.

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Ask: How has the rental market developed so far in 2024?

Answer:

Rent or buy – no hiding place

The sad truth is that there is no security when you need a place to live these days. Prices for single-family homes and condos have risen significantly, higher interest rates have pushed monthly payments to uncomfortable levels, and, as you’ll see below, the rental market is highly competitive and expensive.

Over the past five years, the average rental price in Arlington has increased 21.6% for all property types and 27.1% for single-family homes. So far in 2024, about half of homes offered for rent are rented within the first ten days on the market, and renters have little room to negotiate. The average rent for a property is only 0.2% below the original asking price. Properties that are rented within the first ten days on the market (about half) rent for an average of 1.4% above the asking price.

About the data

The following data is rental data from the Arlington MLS for the last five years. Note that very few commercial multifamily properties are listed in the MLS, so this data is limited to non-commercial rental properties (for apartments, these are mostly privately owned condominiums).

Additionally, it’s difficult to say what percentage of non-commercial properties are rented through the MLS, but I would estimate it’s about half of rental apartments (condominiums), and for single-family homes and townhomes it’s probably the majority. Despite the limited dataset, we still have more than enough information available through the MLS to generate results that represent the true rental market.

Highlights and data table

Here are some highlights from the data table (note that the data for 2020-2023 covers 12 months, but for 2024 only 7.5 months):

• The average rent for an apartment (condominium) has increased by 3.1% this year compared to last year, and the average rent for a detached house and a terraced/semi-detached house has increased by 8.7% and 6.2%, respectively.
• Average rental prices in Arlington have increased by 21.6% over the past five years
• The average rental price for an apartment (condominium) has increased by 17% over the past five years, slightly more than the 14.3% increase in the average cost of purchasing a condominium over the same period.
• The average rental price for a single-family home has increased 27.1% over the past five years, slightly more than the 24.9% increase in the average cost of purchasing a single-family home over the same period.
• The rental market was more competitive in 2024 across all property types than in any year since 2020. Property rental prices were closer to (or above) the original asking price and property leasing was accepted faster than in any previous year. Note that these numbers could decline and be more in line with previous years if the weaker months of 2024 (fall/holidays) are included.
• About 50% of properties accept a tenant within ten days of listing

If you have any further questions about the rental market in Northern Virginia, please contact Eli Residential Group rental specialist Carolanne Korolowicz at (email protected).

If you would like to talk about buying, selling, investing or renting, do not hesitate to contact me at (email protected).

If you would like to have a question answered in my weekly column or would like to talk about buying, selling, renting or investing, please email (email protected). To read my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.

Video summaries of some articles can be found on YouTube at Eli Residential Channel.

Eli Tucker is a licensed real estate agent in Virginia, Washington DC and Maryland at RLAH Real Estate, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460.