“The Richmond multifamily market in 2Q21 continued to demonstrate strength in fundamentals with rent growth at historically high levels, as well as robust absorption of newly constructed properties. These fundamentals contributed to a significant uptick in transaction volume, which we assume will continue throughout the remainder of the year.”
Garrison Gore | Associate
Key Takeaways:
- 7,942 units are under construction or 8.1% of total inventory.
- Lingerfelt Development is looking to start a series of infill projects in the coming years that will add nearly 1,400 apartments along with structured parking to the Western Henrico submarket.
- Occupancy rates jumped 100 basis points (bps) quarter-over-quarter closing at 95.1%, the highest recorded rate since 2002.
- Eastern Henrico County and Prince George County are the most supply constrained at 99% and 98.9% occupancy rate, respectively.
- Richmond’s effective rental rate experienced a 9.3% increase year-over-year closing the quarter at $1,220 per unit. Goochland is leading effective rent growth closing Q2 with an average effective rent of $1,852 per unit, a 17% increase year-over-year.
- Every submarket experienced positive annual rent growth with six experiencing double-digit rent growth year-over-year. All but four submarkets experienced annual growth over 5%.
