Metro Reports Multifamily Market Real Estate Trends

Richmond Multifamily Market Report – Spring 2021

Richmond Multifamily Market Report Spring 2021
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Strong Demand Outpaces Robust Supply

Richmond’s economic anchors, diverse economy and relatively affordable cost of living compared to other East Coast markets has helped it withstand the pandemic’s blows. The metro displayed healthy fundamentals, with strong demand boosting rent expansion despite robust supply. Rents rose 0.3% on a trailing three-month basis through February, outperforming the U.S. rate by 20 basis points. The occupancy rate in stabilized properties increased by 100 basis points in the 12 months ending in January, to 96.3%.

The unemployment rate displayed a steady recovery path, dropping to 4.9% as of November in Richmond and to 5.1% in the Hampton Roads area. Job gains marked the third consecutive month of recovery, clocking in at -4.6% for the 12 months ending in December, outperforming the -6.8% national figure. Trade, transportation and utilities and financial activities gained 1,900 jobs combined. Professional and business services—Richmond’s third-largest sector—shrunk by 4.9%, but company expansions and relocations have been announced in the metro.

Developers brought online 1,426 units in 2021 through February, following a bountiful 2020 when 4,610 units were delivered, marking the best year of the decade. Meanwhile, transaction activity resumed in the third quarter—a trend that continued in 2021 with $252 million in multifamily assets trading through February.

Read the full Matrix Multifamily Richmond Report-Spring 2021

About the author

Anca Gagiuc

Anca Gagiuc brings more than a decade of experience within the real estate industry. She is a senior associate editor with Commercial Property Executive and Multi-Housing News who also writes monthly multifamily reports at Yardi Matrix.

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