An Analysis of High Rent Rates and Its Impact in Washington DC

This report provides an analysis of the high rent rates in Washington DC. It identifies demand, social amenities, security, infrastructure, and communication lines as key factors contributing to the high cost of housing. The report uses the law of supply and demand to explain the effect of high demand on rental prices. It also discusses the advantages and disadvantages of high rent rates, such as increased income for facility providers and potential affordability issues for tenants. The report emphasizes the importance of facility providers consulting with relevant authorities to determine realistic rental fees beneficial to both parties. References to academic sources support the analysis.

ANALYSIS ON HIGH RENT RATE IN WASHINGTON DC 1
Analysis of High Rent Rate in Washington Dc
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ANALYSIS ON HIGH RENT RATE IN WASHINGTON DC 2
Analysis of High Rent Rate in Washington Dc
An analysis of rental rates reveals one challenge facing residents in Washington DC: high rent
rates. This thesis is going to help us determine the causes of high rental rates in Washington DC
State.
This research will attempt to disclose various causes and possible solutions regarding high
rental rates in Washington DC State. This is one of the most expensive places to live in the United
States since it offers a variety of apartments and is very popular since it has numerous job
opportunities and has a thriving urban lifestyle.
Demand has greatly affected rental rates in Washington DC. The high demand for houses in the area
results in increased rental prices. This can be explained using the law of supply and demand which
states that when there is a high demand for a good or service the price of the good or service rises.
(Glaeser and Nathanson, 2017). It also states that when there is a large supply of a good or service
but not enough demand for it, the prices tend to fall. Facility providers increase rates of rent so as to
solve the problem of interest with justice. This will make sure that only people who can meet the laid
down requirements can afford to rent the premises.
Washington DC enjoys a variety of social amenities which have contributed to high rent rates.
It is evident that an area that has schools and hospitals tends to attract a lot of people since the area
will have a better health care and easy education access (Perry and Wiewel, 2015). These amenities
have made the facility providers to increase the rates of rent.
Washington DC is an area that enjoys good security. This makes the area free from terrorists
other dangers such as harm from wild animals. The security systems in the area are very effective
since the area has numerous police stations where residents can report any case of insecurity and get
their issues responded to immediately. Good security in the area prompts the facility providers to
increase the rent fees since the houses have a high demand.

ANALYSIS ON HIGH RENT RATE IN WASHINGTON DC 3
This area has a good infrastructure thereby having good roads and a more improved transport system.
People generally enjoy living in an area where they can access their job places easily and faster.
Communications lines in Washington DC are one of the best in the USA (Soederberg, 2017). These
good communications line makes the residents enjoy fast and reliable communications thus increasing
the demand for housing in the area. This makes the facility providers increase rent fees.
This trend of high rent rates has its own advantages and disadvantages. The advantage is that facility
providers will enjoy a good amount of money and tenants who can afford the rental fees will enjoy
living in an area where there are not many people. The disadvantage of having high rent fees is that
tenants may lack to raise the rental fees and therefore leave the premises to go and find affordable
premises (An et al 2016). This will affect the facility providers negatively since they will be left with
no tenants due to high rent rates.
It is important that facility holders should consult with relevant authorities whereby they can
be advised on the best and realistic rental fees. This will be of great importance to both the facility
providers and tenants since both parties will be comfortable.

ANALYSIS ON HIGH RENT RATE IN WASHINGTON DC 4
References
An, X., Deng, Y., Fisher, J. D., & Hu, M. R. (2016). Commercial real estate rental index: a
dynamic panel data model estimation. Real Estate Economics, 44(2), 378-410.
Glaeser, E. L., & Nathanson, C. G. (2017). An extrapolative model of house price dynamics.
Journal of Financial Economics, 126(1), 147-170.
Perry, D. C., & Wiewel, W. (2015). The University as Urban Developer: Case Studies and
Analysis: Case Studies and Analysis. Routledge.
Soederberg, S. (2017). The rental housing question: Exploitation, eviction and erasures.
Geoforum.