New Construction Opportunities in Washington, DC

New construction is generally expected to create a variety of real estate investing opportunities. For example, in cities like Washington, D.C., house prices tend to increase as well as the demand for new improved houses. For homeowners, this is definitely a wealth-building opportunity. When it comes to investing in residential real estate, there are only two basic types of property you can invest in – new construction and resale.

Resale properties are more often purchased directly from the homeowner who has been living in it themselves. They are typically not purchased from a builder or developer. New construction properties are purchased directly from the builder or developer. They do not have residents and have never been lived in before. In short, they are considered brand new.

So what are the benefits of investing in new construction real estate in DC?

Small deposits

Builders will typically require a very small deposit to secure a contract for a newly built property. Upfront builder deposits can range from as little as 10% of the purchase price. This is sometimes negotiable and is a major advantage for investors who prefer to minimize their out-of-pocket cash until the actual closing date.

Cost-control and customization

An obvious benefit of buying pre-construction property is that you can choose many of the features such as flooring, lighting, plumbing and fixtures. This is useful when you want to keep your costs down while making it as long-lasting and appealing to future tenants as possible. You can even choose your lot location in most new subdivisions. Your property can become your own creation.

Low maintenance and repair

Unlike resale property, new construction properties come with a builder’s warranty which is required by law. Typically, warranties cover materials and workmanship as well as all systems (electrical, plumbing, heating and air conditioning) for up to two years. There is also a 10-year warranty covering major structural elements such as the foundation and basement walls.


New construction properties tend to appreciate at a faster rate than their resale counterparts. As new developments see an increase in residents, retail establishments, schools, and other amenities quickly pop up to service the growing population. This helps increase property values as more residents continue to move into the area, increasing the demand and establishing the community. A growing population is what every investor should be seeking.

New technology

Of course, new construction is going to have new technology. They offer better construction and more advanced, longer-lasting building materials than resale properties. Insulation technology provide better comfort and be energy-efficiency. The new and advanced heating and air conditioning systems will improve indoor air quality. This will definitely help investors to attract tenants/buyers in this time of pandemics.

Emerging areas

New construction can always be found in growing and emerging areas. As a real estate investor, this is where you want to invest to maximize your long term appreciation. But do your research. You want to avoid purchasing a new property in areas where employment, shopping and other important amenities are far away.

So we talked about the benefits that investors have in investing in new construction in Washington, DC. Now let’s list the areas that are rapidly growing in new construction and offering for investors overwhelming real estate investing opportunities.


Columbia Heights

The next time you consider buying a property in Washington, DC, be sure to consider a city’s traits including new construction. DC is increasing in new construction and becoming the center for many great real estate investing opportunities. Be sure to check the District Real Estate® blog or contact us at hello@districtreal.com for insight on where and how to invest in real estate in Washington, DC.