September 25, 2023

Hampton Roads 2Q23 Multifamily Market Insights Report: Strong rent growth likely to continue

Highlights:

The Hampton Roads multifamily market posted a strong performance during the second quarter, as the vacancy rate declined and asking rents continued to trend higher. The pace of multifamily deliveries picked up in recent months, and projects totaling roughly 650 units have been completed to this point in 2023.
Vacancy conditions tightened in recent months, as the rate fell 50 basis points during the second quarter to 5.4%. This marks the first vacancy decline since the second quarter of 2021. Year over year, the vacancy rate has risen by 170 basis points.
Asking rents are increasing at a healthy pace to this point in the year after dipping at the end of 2022. Area rents advanced 1.9% in the last three months to $1,506 per month. Rents have risen 5.2% in the last 12 months, one of the fastest rates of growth in the country.
Despite a healthy start to the year, multifamily sales velocity through the first half of 2023 is down 33% from levels posted in the same period last year, due to the higher interest rate environment. The median sales price year to date is $135,400 per unit.