Richmond Multifamily Report – October 2023
Despite the general slowdown, rents are still up year-over-year.
Richmond rent evolution, click to enlarge
Richmond-Tidewater market fundamentals started to thaw after the first quarter’s slow performance, but metrics were still mostly below national and historic averages. Rates were up 0.4 percent 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 percent, to an average of $1,506.
Richmond sales volume and number of properties sold, click to enlarge
The labor market remained in line with the nationwide slowdown but was still on relatively good footing. Unemployment improved to 2.8 percent 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 percent expansion. Leisure and hospitality led gains with 14,500 positions added, up 8.9 percent. 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.
Richmond. Photo by Alex Potemkin/iStockphoto.com
Developers brought 3,152 units online through the first eight months of the year, down 21.9 percent year-over-year and representing a 1.3 percent 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.
