Let’s talk about Prince George’s County –
A lot of my recent conversations with stakeholders at all levels of the D.C. real estate community and beyond have included some level of discussion about Prince George’s County and the future of its apartment market, and not a ton of it has been positive. A short list of some things people are worried about:
- Pervasive bad debt and a painful eviction process
- A potential moratorium on increased property taxes for residences (tax income has to come from somewhere and this takes a large source of that income off the tables)
- An emphasis on community development (aka higher proffers!)
- Lack of institutional interest for acquisitions in the County
As rent control policies settle into law and new proposals continue to surface, apartment owners in Prince George’s County are facing some hard questions.
After a temporary 3% cap on rent growth in 2023, the County Council made a permanent move: most annual increases are now capped at 3% + CPI, not to exceed 6%. For newer buildings that were originally exempt, an anti-gouging provision is being floated that could limit rent growth to 15%—effectively cutting off upside just as operating costs continue to rise. Add in looming “good cause” eviction legislation and potential mandates like mandatory sprinkler retrofits, and you’ve got a policy environment that’s shifting fast—and not in favor of ownership.
And the impact is real: according to KLNB’s internal tracking and third-party data, multifamily sales in the County of assets larger than 50 units are down roughly 97.4% year-over-year (see below chart). Valuations are under pressure. Buyer sentiment is uncertain at best.
Here’s the paradox: the fundamentals remain solid. Prince George’s has one of the most diverse, well-educated populations in the region. Median household income tops $90,000. It’s a county with job growth, transit connectivity, and strong long-term housing demand. Rents in certain pockets (Woodmore, UMD and its surroundings, Bowie) are stable or growing.
But good fundamentals don’t protect you from bad policy. If you’re an owner sitting on an asset in Prince George’s, now’s the time to run a serious feasibility check. What does your valuation look like under sustained rent caps? What’s your true NOI after factoring in new regulatory compliance costs? And if buyer interest fades further, what does the exit look like then?
We’re advising owners right now on how to navigate these risks, protect their equity, and—when appropriate—structure smart exits while liquidity still exists. If you want a candid, data-driven look at your options, let’s talk.
