Logan Circle Market Analysis Dc

Market Analysis of the Logan Circle Market, Washington, D.C.

Stephanie Erwin

New York University

TABLE OF CONTENTS

Abstract 3

Background 4

Tenant Opportunity to Purchase Act 6

TOPA’s Effect on Tenants 9

TOPA’s Effect on Owners and Potential Purchasers 10

How the Law Impacts Transactions and Ownership 12

The Development Process 13

Recommendations 16

Conclusion 17

Bibliography 18

Appendix A – Chapter 34: Rental Housing Conversion and Sale

Appendix B – An Analysis of the Strengths and Deficiencies of Washington, D.C.’s

Tenant Opportunity to Purchase Act

Appendix C – The Need to Remove Excessive Hurdles from Residential Development in the District

Appendix D – The Uncertain Future of TOPA

REAL ESTATE MARKET CONDITIONS - NATIONAL

According to the REAL Trends Housing Market Report for March 2014 “housing sales declined by 1.5 percent from the same month a year ago, which serves as the the worst result since the recovery began in September 2011. The annual rate of new and existing home sales for March 2014 was 5.504 million units down slightly from 5.589 million units sold in March 2013.” 

While home sales declined, according to this same report the average price of homes sold increased by 8.8 percent in March 2014 compared to March 2013, which is one of the largest increases over the last year.

The analyst believes these statistics reflect the decline in affordability in most regions and also take in account the inclement weather throughout the month along with the lack of inventory present in most markets. There was also a slowdown in year over year sales due to the lack of any real growth in employment or household incomes.

As far as expectations for the future go, the analyst believes that “unit sales are nearing a normal given employment, [in respect to] the...