Is it time to invest in residential real estate in DC?
Rising interest rates may be making headlines, but the housing inventory problem in the nation’s capital is very real. Fortunately, there’s a real solution — and an investment opportunity — lurking in the neighborhoods of Anacostia on Capitol Hill.
With 81.8% of homes in the DC metro area built before 2002, there is considerable opportunity for investors in the form of older homes, most of which are vacant. According to a recent report analyzing US census data, there are 16 million vacant homes in the United States including over 3,000 vacant properties in DC.
As the nation’s largest private source of investment properties, New Western’s Market connects more than 100,000 local investors with vacant properties and other off-market properties that are ripe for value-added renovations.
The company’s model is to increase residential housing inventory at a time when home ownership is increasingly out of reach for many Americans, in part due to low inventory and low cost. Homes purchased on the New Western market and later renovated sell for up to 31% less than new construction.
Experts suggest that the metropolitan area’s high incomes and education levels — along with the presence of nearly 250,000 federal government jobs — make the region resilient to skyrocketing interest rates.
“The DC market has strong underlying fundamentals with an employer base that is diversifying across industries,” said Julia Park, senior director of a DC-based investment firm. “A growing focus on technology and science, including Amazon’s headquarters across the river, will continue to attract talent and an educated workforce in need of a home” , Park continued.
The New Western DC general manager agrees. “We have identified the District of Columbia and its surrounding cities as a strong opportunity for investors due to its growing population as well as the diversity of housing prices and products,” commented Scott DeCamp.
For too many DC residents, home ownership is out of reach. The median sale price of a single-family home in Washington, D.C., in July was $1.153 million, and just 98 homes sold that month, down 19% from July 2021 according to red fin. Homes that are listed continue to move quickly, averaging 30 days on the market.
DeCamp and his team have set a goal to revitalize nearly $1 billion in properties in the area over the next five years. Mature neighborhoods like Anacostia and Deanwood are just a few of the areas where New Western sees opportunities for revitalization as the employment and amenity base grows.
The power of locals
New Western believes that local investors are better able to rehabilitate distressed properties than owner-occupiers. These independent contractors bring their expertise and abilities to appraise a property, remedy any damages, and determine the best plan to add value.
Without the intervention of qualified local rehabilitators, these vacant homes would sit unused or be doomed for demolition, only adding to the historical shortage of inventory. New Western effectively places these vacant properties in the hands of investors who can turn them into move-in ready homes for sale or rent.
Why the New Western?
New Western buys a home every 13 minutes and brings its vast knowledge and expertise to its investors. “New Western focused on understanding my investment strategy and providing offers tailored to my specific needs. They offered a deeper level of context and insight,” Park commented.
Investor Andrew Davis agrees: “New Western uniquely offers value-added opportunities that fit my investment style. I can enter and improve a property and add value to the market.
Investors across the country are praising New Western for being far more nimble than other options. The company’s investment-grade property marketplace simplifies the process for busy investors who no longer have to hunt for deals.
Proactive communication, fast response times and a seamless process from transaction to transaction are hallmarks of a New Western project. “New Western is much more organized,” veteran investor Jared Childs said. “The deals I buy from them run smoothly with the right support team in place.”
The opportunity now is for savvy DC investors to capitalize on the off-market properties that New Western offers. With an ever-changing market, it’s essential to have a professional in your area who can uncover the right deals to fit your investment approach. Let us help you discover which one fits your strategy.
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