Housing costs in the Washington area have increased immensely compared to other major cities in the United States. A study by Redfin real estate company found that the median rents in the region have risen by 12% between September 2023 and September 2024, according to The Washington Post.
The study also revealed that the rise in home prices over the past year has reached 7.5%, with the median home costing approximately $650,000. The increase has impacted residents in the region, especially those previously struggling with high living costs. The minimum wage in Washington is about $17 an hour, which equates to roughly $2,700 a month without taxes, according to The Washington Post. The average price of a one-bedroom apartment now exceeds $2700, making it difficult for residents to cover basic living expenses.
“Housing prices are definitely concerning to me because of the impact it has on our nation,” junior Ella Song said. Lisa Sturtevant, the chief economist at Bright MLS, shared that the crisis is fueled by two factors: the highly limited housing supply and the slow increases in new construction. Zoning restrictions and regulations in Washington limit the height of buildings. As a result of these laws, many developers opt to build luxury high-rise apartments that are not financially accessible to the majority of the population.
Additionally, other areas in the region, including locations like Silver Spring, MD, and Arlington, VA, have seen significant rent hikes. These cities are typically regarded as affordable places, according to WUSA9. As more people are financially forced out of Washington, neighboring cities experience stratospheric rent prices as well. A report from The Fiscal Policy Institute emphasized the need and called for reforms to affordability, including emergency rental assistance. The report also highlights that while the DC Council strengthened affordable housing requirements for critical social justice programs, it failed to add safeguards that ensure responsible use of public dollars.
“I think rising house prices is really unfortunate and concerning. I think that they will impede home ownership among lower and middle income households and increase rent burdens as demand further exceeds supply, which could be detrimental for families,” said junior Coco Campbell.
