What is the Housing Market Like in Richmond, Virginia?

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:

21% reduction in new listings for single family homes
9.2% reduction in new listings for condo/town homes
For single family homes, pending sales decreased by 11.1%
For condo/town homes, pending sales increased by 1.2%
36.6% inventory of single family homes has reduced
48.5% inventory of condo/town homes has reduced
For single family homes in Richmond, median sale price has increased to 11.8% ($379,950)
Condo/town homes median sales price has increased 20.7% ($321,500)
Single family homes have a 33.3% lower monthly supply of inventory
Condo/town homes have a 45.5% lower monthly supply of inventory

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:

Table of Contents

Population Growth Of Richmond

Richmond proper houses about 226K people while the metropolitan area has a 1.3 million population, making Richmond the fourth largest city in Virginia.

Important Population Statistics

In the last 10 years, the greater Richmond area has seen population growth at rates over 8%.
Over the past 10 years, an average of 32 people have moved to the greater Richmond area each day.
Today, the Richmond metropolitan area sees a population growth rate of 11%.
51% of new tenants in Richmond proper came from within the U.S. and 25% came from abroad.
48% of new tenants in the Richmond metropolitan area came from within the U.S. and 11% came from abroad.

Impressive Job Market in Richmond

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.

Key Job Market Stats

The city of Richmond was ranked the 69th best place to find a job in the U.S. in 2020 and is prized as one of the five best cities in Virginia.
The Richmond metropolitan area boasts about $76.2 billion in GDP, representing roughly 16% growth over the last decade.
Richmond shows 2% year-over-year job growth, with increasing wages and salaries jumping 2.6%.
Richmond was ranked 55th by Forbes as the best place for business and careers in the U.S.

Competitive Real Estate Market in Richmond

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.

Real Estate Market Stats

There has been a 15.1% increase in home values in Richmond over the last year. Home values have increased by 65% over the previous five years.
Single family homes in Richmond tend to cost about $325,000. The median price per square foot is $201.
Single family homes in Richmond have a median selling price of $335,000.
Ginter Park is the most expensive area among all 120 neighborhoods in Richmond, with a median listing price of $647,000.
Jeff Davis is the most affordable option when buying a home in Richmond, where the median listing price is $147,500.

High-Value Renters’ Market in Richmond

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.

Important Renters’ Market Stats in Richmond

The monthly median rent rate for a two-bedroom apartment in Richmond is $1,539.
The monthly median rent rate for a three-bedroom apartment in Richmond is $1,950.
The monthly median rent rate for a four-bedroom apartment in Richmond is $2,400.
Ginter Park is the most affordable neighborhood in Richmond. Rent rates here are approximately $578, on average.
Stony Point, Monroe Ward, and Sherwood Park are the most expensive areas in Richmond. Rent rates here range from $1,544 to $1,625, on average.

Great Life Quality in Richmond

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.

Key Quality of Life Stats:

The average Living Cost in Richmond is 3.5% less than the national average.
Niche.com has given Richmond high marks for nightlife, outdoor activities, and commuting.
Tenants can live comfortably in Richmond for less than $50,000 per year, according to Inc.com.
Richmond is one of the best places to start a career or find a new job.
U.S. News ranked Richmond #57 for Best Places to Live and #66 for Best Places to Retire among 150 metro areas in the United States.
Richmond has a humid subtropical climate with hot summers and moderately cold winters.