A new trend is setting the Richmond metro area housing market on fire.
One recent report clearly denotes the change in some key housing indicators. The numbers indicate how the Richmond metro has become a seller’s hotspot. Essentially, there is persistently strong demand from buyers, but housing inventory remains low. Looking at these trends in conjunction, it’s the sellers who win with such tight market conditions.
In an interview with NBC 12, Shannon Milligan, an agent at RVA Home Team with Exp Realty, stated, “buying sight unseen is becoming common as home buyers race against time to find a house.”
Basically, there are too many buyers and not enough sellers in the real estate market in Richmond.
Some stats from Central Virginia Regional MLS’s report from June 2022 include:
All of these stats reinforce the strength of the Richmond metro’s designation as a seller’s market.
So, is investing here a safe bet? Let’s find out:
Richmond proper houses about 226K people while the metropolitan area has a 1.3 million population, making Richmond the fourth largest city in Virginia.
A national study reveals Downtown Richmond has been leading the city’s growth for over two decades. Since It’s home to more than 80% of the city’s jobs, it drives high economic value, creativity, and innovation for the entire region.
Due to its significant economic impact, suburban job growth has also risen. Further, Richmond.com asserts that continued impressive job growth in these nearby suburban areas is expected.
Midlothian, a county located on the west side of Richmond, grew its job market by only 1.8% in 2020. It’s expected to blow that figure out of the water and achieve a 37.5% growth rate in the next 10 years, though.
Understandably, houses continue to sell quickly as the real estate market in Richmond gets more competitive every day. Homes in this region have been remaining on the market for only about 16 days. Simply put, with such limited supply, the demand is incredibly high here.
6 News Richmond recently reported that rent in the Richmond area increased 22% over the past two years. This year, the average rent is roughly $1415.
Understandably, the global COVID-19 pandemic and widespread lockdowns likely spurred some of these more drastic changes to the local housing market. Delayed construction projects, Federal relief efforts, Americans relocating amid the pandemic, and more could be behind this rent surge.
Enriched with historical and modern-day attractions, Richmond appeals to a wide range of demographics. From young families to retirees, the city boasts a rich history and high quality of life. In fact, U.S. News & World Report has even declared Richmond one of the best places to live in the USA.
Downtown Richmond, in particular, is a popular choice. It offers trendy housing, exclusive art galleries, concerts, restaurants, and many other exciting opportunities. Virginia Commonwealth University and the University of Richmond are also conveniently situated Downtown.
You’ll also find hundreds of public parks, amusement parks, nature preserves, and more throughout the Richmond metropolitan area.
Impressive growth and development have taken place in Richmond, both recently and historically. Tenants enjoy a high quality of life, affordable living, and all the perks and convenience of a sizable city. Plus, the city boasts a stable seller’s market with an excellent possibility of good returns! What’s not to like?
Whether you’re purchasing one Richmond home or one hundred, you don’t have to go it alone.
If you’re ready to buy your first (or next) investment property, here are 3 steps to get started today:
Taylor Streitmatter is Evernest’s Director of Brokerage. His diverse expertise includes sales, operations, and brokerage management.
Start the conversation!