Richmond 4Q23 Multifamily Market Insights report: Sales activity picked up to close 2023

Highlights

  • The past year has been an active one in the Richmond multifamily market. Developers delivered projects totaling 5,349 units, and absorption was considerably stronger than in 2022. The heightened demand resulted in a mostly stable vacancy environment and allowed for modest rent growth.
  • Vacancy was steady throughout much of the year, despite a surge in new construction. Vacancy inched up 30 basis points in 2023, ending the year at 6.1%. Net absorption totaled approximately 3,700 units in 2023.
  • Rents gained ground in 2023, although increases were concentrated in the first half of the year. Asking rents were $1,495 per month in the fourth quarter, up 2.2% from one year earlier. 
  • Transactions in the Richmond multifamily investment market were limited in 2023, although the pace picked up at the end of the year. The median price for the full year was $175,000 per unit, while cap rates ranged between 5.5% and 6.25%.

Read the report, or learn more by engaging with our office in Richmond, Va.