Fundamentals Subdued, Rent Growth Healthy
Richmond-Tidewater market fundamentals started to thaw after the first quarter’s slow performance, but metrics were still mostly below national and historic averages, according to the latest Yardi Matrix Richmond multifamily market report. Rates were up 0.4% on a trailing three-month basis through August, 20 basis points higher than the U.S. rate. On a year-over-year basis, rents were up 2.4%, to an average of $1,506.
The labor market remained in line with the nationwide slowdown but was still on relatively good footing. Unemployment improved to 2.8% as of July, according to preliminary data from the Bureau of Labor Statistics, having dropped 60 basis points since January. It was also 70 basis points below the U.S. figure. Over the 12-month period ending in June, Richmond added 35,900 jobs, for a 2.3% expansion. Leisure and hospitality led gains with 14,500 positions added, up 8.9%. Earlier this year, Richmond authorities approved a $2.4 billion development dubbed Diamond District, slated to include a baseball stadium; hospitality, office and retail space; and 1,000 affordable units.
Developers brought 3,152 units online through the first eight months of the year, down 21.9% year-over-year and representing a 1.3% expansion of stock. Although subdued, construction activity was healthy, with the pipeline totaling 13,326 units underway. At $439 million, investments amounted to less than a fifth of the amount recorded during the same period last year.
Read the full Yardi Matrix Richmond Multifamily Market Report: October 2023
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