After a rare dip during the pandemic, apartment rents in Alexandria have continued to increase dramatically over the last few years, increasing by 4.8% so far this year.
CoStar data on rents, made available by the City of Alexandria, showed the asking rent per unit has continually risen over the last decade aside from a fluke dip in 2020 due to the pandemic.
In 2020, rent growth decreased by 3.8% and the average asking rent per unit dropped from $1,833 the year before to $1,764.
Since then, however, rent growth has increased steadily after a 12.1% jump in 2021.
For 2023, rent increased by 3.8%. So far in 2024, rent has grown by 4.8%. This outpaces the national inflation rate of around 3.4%.
In 2024, the average asking rent per unit in Alexandria is $2,188 per month, not including utilities.
The Community Needs Assessment, prepared by the Economic Opportunity Commission and the Department of Community and Human Services, also noted that renters in Alexandria have reported that more landlords and property managers are passing on additional fees and utilities, ranging from an extra $250-$450 per month.
“These costs, which are not reflected in asking rents, are borne by residents and contribute to their total housing costs, resulting in a significant increase in housing cost burden for many tenants,” the report said.
Last year, a panel of housing experts said that despite new growth, the city still faces a significant housing shortage and rents won’t steady until the supply catches up to the demand.
“The scale of developments haven’t met the need,” said Anita Morrison, principal at Partnerships for Economic Solutions. “We’re always running a few steps behind the demand. It’s about getting enough supply to increase vacancy rates and create competition, but we’ve never moved the needle enough with supply to see that happen.”
Earlier this year, Director of Finance Kendal Taylor said a drop in apartment building assessments indicated there’s hope that significant amounts of new construction of apartments could stabilize or even decrease rents.
“Rents are low, and that’s good for our community,” Taylor said. “That’s not necessarily good for income, but the apartments will settle in.”
