The multifamily real estate market in Washington County, RI has shown a solid upward trajectory in recent years, marked by rising rents and high occupancy rates. This trend continues to benefit investors, with strong demand driving the market forward. Let's dive into the most important data points shaping the Washington County multifamily landscape.
Consistent Rent Growth
Since 2020 Q1, average rents per unit in Washington County have grown significantly, from $1,534 to $1,998 by 2024 Q4 QTD, representing an overall increase of roughly 30.2% in under five years. This equates to an annual growth rate of 5.1%, which demonstrates the region’s robust rental market.
- 2024 Outlook: The forecast indicates continued growth, with projected rents remaining strong. This consistent rise in rents points to sustained demand for multifamily housing in Washington County.
Occupancy Rates Remain Strong
Occupancy rates in Washington County have consistently stayed above 95%, with the latest figures from 2024 Q4 showing 98.4% occupancy. This underscores the strength of demand for rental units, with a very low vacancy rate of just 1.6%. High occupancy levels and low vacancy reflect a tight market, which means renters are likely to face competition when looking for units, while landlords can continue to enjoy high demand and stable income streams.
Minimal Concessions: A Landlord’s Market
Concessions—discounts or incentives offered by landlords to attract tenants—remain minimal in Washington County, typically around 0.3%. This indicates that landlords have little need to offer rent discounts to fill their units, further reinforcing the strong demand and tight supply in the area.
Supply Constraints
Washington County's multifamily supply has remained relatively static, with the number of units increasing only slightly over the past few years. As of 2024 Q4, there are 2,757 units across 121 buildings, compared to 2,664 units in 2020 Q1. This lack of significant new construction has helped maintain high occupancy rates and upward pressure on rents.
Inflation-Adjusted Rent Growth
When adjusted for inflation, the multifamily market in Washington County has still shown positive rent growth. Inflation-adjusted data indicates that rents have increased steadily even as broader economic conditions fluctuated, signaling a resilient and attractive market for investors.
Posted by Tim Bray on
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