Richmond Q3 Multifamily Market Insights: Sales activity concentrated in newer, larger properties

Highlights:

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• The Richmond, Virginia, multifamily market recorded a mixed performance during the third quarter, as asking rents inched higher and vacancy rose. Apartment developers remain active across the region with projects totaling more than 6,600 units currently under construction.
• The vacancy rate increased during the third quarter, jumping 90 basis points to 5.8 percent. Year over year, vacancy is up 190 basis points after reaching cyclical lows in late 2021 and earlier this year.
• Average asking rents made modest gains during the third quarter, advancing less than 1 percent to $1,479 per month. During the past 12 months, local apartment rents rose 8.1 percent.
• Sales activity accelerated during the third quarter, and the number of transactions to this point in the year is elevated. The median sales price climbed to $178,900 per unit, ahead of last year’s figure. Cap rates have been fairly stable thus far in 2022, averaging 4.25 percent.

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