Richmond Q2 Multifamily Market Report: Accelerating Absorption Drives Down Vacancy Rate
Highlights:
- Operating conditions in the Richmond multifamily market improved during the second quarter. Vacancy rates tightened considerably, with absorption outpacing new supply growth. Rents rose and investment activity accelerated.
- Vacancy fell 60 basis points during the second quarter, with the rate dipping to 4 percent. Area vacancy is down 130 basis points year over year; the current rate is the lowest vacancy in the market in nearly 20 years.
- Asking rents spiked 5.2 percent in the second quarter, reaching $1,324 per month. In the past year, rents in the area have pushed up 9.9 percent.
- Sales activity gained momentum in the second quarter, fueled by improving property fundamentals. Cap rates have compressed, averaging 4.9 percent year to date, while the median price reached approximately $129,900 per unit.
