7/12/22 Washington, DC Mastermind Meeting

Guest speaker, Kevin Gillen, Ph.D., Senior Research Fellow, with Drexel University Lindy Institute for Urban Innovation provided an informative presentation on the outlook for Washington DC’s Housing Economy.
• Regardless of the overall state of the economy, the District’s unemployment rate is historically an average of 3.6 percentage points higher than its suburbs.
• The District’s median household income is historically less than the rest of the region, regardless of the overall state of the economy, however that difference has grown less in recent years.
• The District’s median household income has grown about 4.25% over the last 20 years outpacing both its suburbs and the nation.
• Interest rates have more than doubled in the last 6 months on a standard 30-year fixed rate mortgage.
• There is a significant variation in construction labor costs across the region, Maryland’s hourly labor costs are $4-5 dollars an hour higher than the region.
• House price appreciation has dramatically accelerated post-covid with an average increase of 22%.
• The District remains the highest price market in the region with a $282K spread!
• Low inventories are key reason for recent price appreciation along with low levels of new construction.