Richmond Q2 Multifamily Market Insights: Strong growth outlook driving new development

Highlights:

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• The Richmond multifamily market ended the second quarter in a strong position. Rents continue to push higher, and while the vacancy rate has ticked up, current levels are about 150 to 200 basis points lower than recent averages.
• The vacancy rate trended upwards in the first half of the year, following two years of declines in 2020 and 2021. The rate ended the second quarter at 4.3 percent, up 30 basis points year over year.
• Asking rents have advanced at a healthy rate to this point in the year. Average rents rose 2.7 percent in the second quarter to $1,476 per month. During the past year, rents jumped 11.5 percent.
• Sales activity dipped slightly during the second quarter, although the number of transactions year to date is ahead of levels recorded during the same period in recent years. The median sales price in the first half of 2022 is roughly $127,000 per unit, while the median price in the second quarter topped $175,000 per unit.

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