Richmond Multifamily Report – April 2024
Fundamentals are improving in the Virginia capital.
After seven months of either staying flat or declining, national rents rebounded slightly as spring approached. In Richmond, rents were up 0.2 percent on a trailing three-month basis through February, to an average of $1,500. Meanwhile, the U.S. figure remained negative, down 0.1 percent. Year-over-year, Richmond rates were up 2.5 percent, well ahead of the 0.6 percent national figure. Meanwhile, occupancy saw an unusual improvement over the same period, up 10 basis points, to 94.7 percent, as of February.
The area’s economy showed signs of stability, as unemployment was 2.9 percent in December in both Richmond and Hampton Roads, according to data from the Bureau of Labor Statistics. This was 10 basis points lower than Virginia’s overall rate. The metro’s labor pool expanded by 1.3 percent in 2023, adding 22,400 jobs. Leisure and hospitality led growth with 8,000 jobs, followed by education and health services (4,800 jobs). In December, a significant milestone was achieved in the development of the upcoming 162-mile passenger route connecting Raleigh, N.C., and Richmond. The U.S. Department of Transportation approved a $1 billion grant for the project.
Supply showed no sign of dwindling, as Richmond and Hampton Roads had a total 14,146 units under construction as of February. Both completions and construction starts improved year-over-year, as developers brought 5,986 units online in 2023 and started work on 6,593 units across the metro.
