Read the latest Yardi Matrix Richmond Multifamily Market Report.
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. 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 Matrix Multifamily Richmond Report-October 2023
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