Metro Reports Multifamily Market Real Estate Trends

Richmond Multifamily Market Report – Fall 2021

Richmond Multifamily Market Report Fall 2021
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Picking Up the Pace

Richmond’s multifamily market has held strong after weathering last year’s economic disruptions. Rents were up by 1.7% on a trailing three-month (T3) basis to $1,325 as of August, on par with the national rate of growth. At the same time, affordability has drawn additional demand as the metro’s population expands. While Lifestyle rents grew fastest, up 2.3% on a T3 basis to $1,584, the working-class Renter-by-Necessity segment also held positive, up 1.4%, to $1,184, during the same period.

The metro added 61,500 jobs in the 12 months ending in June, with increases in nearly all sectors. Unemployment levels continued to trend downward, falling to 4.4% in July—100 basis points less than the national figure. Future growth is on the horizon, with several employers announcing major expansion plans earlier this year. What’s more, Virginia ended the fiscal year with a $2.6 billion budget surplus, which could spur additional growth.

Multifamily development has taken off, with close to 11,500 units under construction at the end of August. Deliveries this year are anticipated to hit levels not seen in more than three decades. Investment has also picked up, with $789 million in transactions closed year-to-date through August, more than double the volume of the same period last year. Sales prices averaged $133,973 per unit, nearly one-quarter less than the national figure.

Read the full Matrix Multifamily Richmond Report-Fall 2021

About the author

Jeff Hamann

Jeff Hamann is a senior associate editor with Commercial Property Executive and Multi-Housing News. He has worked in real estate research since 2016, joining the CPE-MHN team in late 2017. Jeff’s areas of focus include data journalism, multifamily reporting and managing the publications’ surveys and rankings.

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