The National Guard recently awarded a $292 million contract to D.C.-based apartment-hotel company Placemakr for up to 2,000 apartment-style units for troops deployed in D.C.
The National Guard said the move is meant to provide more stable housing for troops — who are slated to be stationed in the nation’s capital until 2029 — while also saving money.
“This contract delivers stable, secure housing for our soldiers and Airmen while achieving significant cost savings for the government,” Monica Williams, executive director of acquisitions and the head of contracting activity for the National Guard Bureau, said
The contract’s scale raises questions about whether it could affect housing availability.
George Mason University regional economist Terry Clower said that is not likely.
“Two-thousand units in the grand scheme of our housing market is really pretty much a drop in the bucket,” Clower said.
He said the impact could vary by location, but if the units are spread across multiple buildings and neighborhoods, there may not be a significant impact on the broader housing market.
“It’s not going to move the markets much one way or the other. Though for an individual landlord, it might be a good thing,” Clower said.
D.C. Policy Center Executive Director Yesim Sayin agreed, noting the District has more than 250,000 rental units.
“If you had asked me this question five years ago, I would have been worried about the pressure on the housing market. But today, I welcome it,” she said.
Sayin said rising vacancies and a softer demand for housing mean the market is better positioned to absorb the additional renters than it would have been several years ago. She noted that of D.C.’s more than 250,000 rental units, the 2,000 units covered by the contract amount to a small percentage.
“Just to put this number in scale, it’s less than 1%. So it’s a relatively small number of units,” Sayin said.
She also said vacancy rates have increased across a range of properties, including some which are typically always filled.
“We have seen vacancy rates increase across all types of buildings, not just very new buildings with high rents, but also rent-controlled buildings that are typically filled to the rim because the rents are more favorable,” Sayin said.
National Guard troops had been staying in hotels across the region before the Placemakr contract. The company operates properties in D.C.’s Navy Yard, Buzzard Point, Dupont Circle and West End neighborhoods, as well as in Arlington’s Ballston neighborhood. According to its , it offers fully furnished apartments for extended and short-term stays.
Â鶹¹ÙÍø has reached out to Placemakr for comment.Â
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