Mayor-elect Janeese Lewis George campaigned on protecting tenants and getting 72,000 homes built across Washington, D.C. within five years, but as she prepares to take office in January, the developers who would actually build that housing are skeptical the number adds up. The District's development market has slowed sharply amid federal job losses, unpaid rent, regulatory hurdles and high financing costs, and many in the industry say Lewis George's early promises of denser zoning and faster permitting, however welcome, won't be enough to turn things around.
According to Axios, developers broadly welcomed Lewis George's promises of higher-density development and expedited permitting, but said those moves alone would not fix the current market. Nigel Crayton, of commercial real estate group Greysteel, put it bluntly: he said 99% of developers consider the 72,000-home goal unachievable, and that the target itself could suggest Lewis George does not understand how difficult construction actually is right now.
Permits and Groundbreakings Have Collapsed
The numbers back up that pessimism. The D.C. Policy Center found the District permitted only 1,372 multifamily units in 2025, down from 5,000 to 8,000 a year just a few years earlier, with early 2026 figures showing a modest uptick to 1,261 permits in the first seven months of the year. Greater Greater Washington, however, reported that D.C. building permits were on track in 2026 to total just 436 units, which it called the lowest number of permitted units since 1998 — a figure that conflicts with the Policy Center's count, and the available evidence does not explain whether the two outlets are measuring different things.
Construction starts tell a similarly grim story. Bisnow reported that 932 rental housing units began construction in D.C. last year, a 79% drop from the 4,474 units that broke ground in 2023. A CoStar report described multifamily construction in the city as leveling off amid tighter capital markets, rising costs and a sharp reduction in groundbreakings, while Bisnow separately noted federal job losses across the broader Washington region.
Unpaid Rent Looms Over New Construction Plans
Peter A. Tatian, an Urban Institute housing expert, framed unpaid rent as a more fundamental problem than the pace of new building, since buildings simply cannot operate without rent revenue, and he said the resulting shortfall puts much of the existing housing stock at risk. A D.C. Council committee report cited by Bisnow found D.C. landlords are sitting on rental arrears averaging $2,207 per unit, more than twice the national average. Tatian said stabilizing and preserving existing affordable housing should take priority over new construction, and argued Lewis George will need to govern as both tenant-friendly and pro-business at once.
That balancing act is complicated by rents that are already falling. Asking rents declined 1% to 4% across DMV jurisdictions last year. In the year ending January 2026, Brookings found observed rents dropped 4.4% in the District and 3.6% in Arlington County — a sign the softening market stretches beyond city limits.
Rent Stabilization Plans Remain Murky
Bisnow reported that Lewis George hasn't provided specifics on how she will stabilize rents and doesn't mention a rent freeze or rent control reform in her platform. Yet her campaign platform, posted at Janeese for DC, says she will strengthen and expand D.C.'s rent stabilization program and prioritize truly affordable homes — a discrepancy the available reporting does not resolve. An adviser, Tommy Wells, told Bisnow that “all the tools will be in the toolbox,” suggesting no single approach, such as a rent freeze, has been locked in.
Lewis George has promised higher-density development and expedited permitting. She has also supported city-owned mixed-income housing.
Developers Weigh Northern Virginia Against D.C.'s Draw
Ian Ruel, of commercial real estate group Feldman Ruel, said D.C.'s tenant-friendly policies have pushed some developers toward places like Northern Virginia, which they see as more pro-business with more perceived growth potential. He argued the District needs a public relations campaign to change the stigma around investing there. Brad Fennell, of development and property management group WC Smith, struck a more hopeful note, saying Lewis George is focused on rebuilding trust and that he's hopeful she can be both tenant-friendly and pro-business.
Despite the headwinds, many developers remain optimistic about the District's long-term growth. Crayton attributed D.C.'s appeal to its walkability, transit access and a high concentration of educated professionals, and said he expects investment to return to the District once the current issues are fixed.
What Lewis George Has Said
For her part, Lewis George has said there is no single fix for the many issues in the housing ecosystem and that the status quo is not working for tenants or landlords alike. She previously said she would address unpaid rents and build city-owned mixed-income housing, and has said macroeconomic factors would not dissuade her from fulfilling her promise to build more housing. She has said she will break down silos and rebuild trust among stakeholders to bring business back to D.C. while ensuring working Washingtonians benefit.
Her transition committee on housing includes tenant advocates and affordable housing experts, though it does not include any current developers, according to the mayor-elect's team. She has not yet disclosed further details of her broader mayoral agenda. One wrinkle that could shape the outcome either way: a rewrite of the D.C. Comprehensive Plan may help pave the way for more housing, though how much difference it makes won't be clear until Lewis George takes office in January.
