Hampton Roads Q2 Multifamily Market Insights: Rents continue to trend higher, despite recent vacancy upticks

Highlights:

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• The apartment market in Hampton Roads appears to be settling into a new level of operational performance. The vacancy rate has pushed higher, after reaching an unsustainably low level late last year, while rents have risen across all property classes.
• Vacancy rose 30 basis points in the second quarter to 3.7 percent. Vacancy reaches a cyclical low of 2.6 percent in mid-2021.
• Average rents rose 2.6 percent in the second quarter to $1,432 per month. This followed a 2 percent increase at the beginning of the year. During the past 12 months, asking rents have surged 9.3 percent higher.
• Multifamily investment activity gained momentum in the first six months of the year. The median sales price reached more than $149,000 per unit in the first half of 2022, a 10 percent increase from the median price in 2021. Cap rates during the second quarter averaged approximately 4.2 percent.

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