Hampton Roads Q3 Multifamily Market Insights: With rent growth persisting, investors remain active


Hampton Roads market snapshot for Q3 2022
  • The multifamily market in Hampton Roads, Virginia, recorded a mixed performance during the third quarter, as vacancy rates pushed higher, and rent growth continued to climb. Multifamily developers remained active, with nearly 3,000 units currently under construction, up 40 percent from one year ago.
  • After remaining in a very low range for the past two years, the local vacancy rate rose 90 basis points during the third quarter, reaching 4.6 percent. Year over year, the rate is up 200 basis points.
  • Apartment rents rose by 1.7 percent during the past three months, reaching $1,456 per month. During the past 12 months, average rents have advanced by 7.4 percent.
  • The multifamily investment market posted another strong quarter. Sales velocity exceeded levels recorded during the previous period, and prices have trended higher. Year to date, the median sales price is roughly $149,000 per unit. Cap rates have ticked higher, averaging approximately 4.6 percent during the third quarter.

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