Rising interest rates may be dominating headlines but the housing inventory issue in the nation’s capital is real. Fortunately, there’s a real solution – and an investment opportunity – lying dormant in neighborhoods from Anacostia to Capitol Hill.
Age Matters
With 81.8% of homes in the DC metro area built before 2002, there is considerable opportunity for investors in the form of aged housing, much of which sits vacant. According to a recent report analyzing US census data, there are 16 million vacant homes across the US including more than 3,000 vacant properties in DC.
As the largest private source of investment properties in the nation, New Western’s marketplace connects more than 100,000 local investors with vacant and other off-market properties that are ripe for value-add renovations.
The company’s model is growing residential housing inventory at a time when home ownership is increasingly out of reach for many Americans – due in part to low inventory and cost. Homes that are purchased through New Western’s marketplace and later renovated sell for up to 31% less than new builds.
Why Now?
Experts suggest that high incomes and education levels in the metro area – along with the presence of nearly 250,000 federal government jobs – make the region resilient to spiking interest rates.
“The DC market has strong underlying fundamentals with an employer base that is becoming more diverse across industries,” said Julia Park, Managing Principal at a DC-based investment firm. “An increasing focus on technology and sciences, including Amazon’s HQ2 across the river, will continue to attract talent and an educated workforce needing a place to call home,” Park continued.
New Western’s DC general manager concurs. “We identified the District of Columbia and its surrounding cities as a strong opportunity for investors from both its population growth as well as diversity of price points and housing 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, DC, in July was $1.153 million, and just 98 homes sold that month, down 19% from July 2021 according to Redfin. Homes that are listed continue to move quickly, averaging 30 days on the market.
DeCamp and his team have set a goal to revitalize almost $1 billion in properties in the region 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 Local
New Western believes that local investors are better able to rehab distressed properties than owner-occupants. These solopreneurs bring know-how and capabilities to assess a property, address any damage and determine the best plan to add value.
Without the intervention of skilled local rehabbers, these vacant homes would remain unused or be doomed for demolition, only adding to the historic inventory shortage. New Western efficiently moves these vacant properties into the hands of investors who can transform them into move-in ready homes for sale or rent.
Why New Western?
New Western buys a home every 13 minutes and brings vast knowledge and expertise to its investors. “New Western was squarely focused on understanding my investment strategy and delivering deals that fit my specific needs. They offered a deeper level of context and insight,” Park commented.
Investor Andrew Davis concurs: “New Western uniquely offers value-add opportunities that match my investment style. I can go in and improve a property and add value to the market.”
Investors across the country laud New Western for being much more nimble than other options. The company’s marketplace of investment-grade properties simplifies the process for busy investors who no longer have to hunt down the deals.
Proactive communication, quick response times and a seamless process from deal to done are hallmarks of a New Western project. “New Western is much more organized,” according to veteran investor Jared Childs. “The deals that I buy from them run smoothly with the right support team in place.”
Opportunity. Delivered.
The opportunity is now for savvy DC investors to capitalize on the off-market properties that New Western delivers. With an ever-changing market, it’s critical to have a pro in your corner who can uncover the right deals to fit your investment approach. Let us help you discover the one that fits your strategy.
Contact us to gain access to our exclusive local inventory.
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