Hampton Roads Q4 Market Insights: Investment activity slows, but demand persists for older assets

Image

Highlights:

• Multifamily operating fundamentals posted a mixed performance in 2022 in Hampton Roads. The vacancy rate trended higher, returning closer to the market’s historical norm, while rents rose. Fundamentals softened at the end of the year.
• Vacancy continued to trend higher in recent months, jumping 110 basis points during the fourth quarter to 5.7 percent. Year over year, local vacancy is up 290 basis points.
• After three years of strong growth, asking rents dipped less than 1 percent during the fourth quarter, reaching $1,450 per month. For the full year, rents advanced 6 percent.
• The multifamily investment market slowed in the last few months of the year, as deal volume fell 50 percent from the third quarter to the fourth quarter. The median sales price finished 2022 at $150,600 per unit.