Richmond's new apartment wave is peaking
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Richmond is expected to slow the pace of new apartment construction by 2028, a new report finds.
Why it matters: The projected cool-down comes as a national shortage of homes to buy or rent is keeping housing prices high.
By the numbers: Metro Richmond completed construction of 15,936 apartments from 2019 to 2023, per a recent analysis by RentCafe.
- That number is poised to drop to an estimated 15,325 for 2024 to 2028 — a nearly 4% drop.
- That includes around 4,510 apartments on track to be delivered this year.
Meanwhile, the region's population, the fastest growing in the state, is projected to keep growing.
The big picture: A rush of new apartments, financed when interest rates were lower, recently helped to ease rent hikes.
Yes, but: Most new apartments are amenity-packed and perched in sweet locations — not the affordable rentals many people want.
- Those luxury apartments have helped push the average cost of rent beyond what's affordable for around half of all Richmond renters.
- The average rent in Richmond is now $1,513 a month, according to the latest CoStar data. Last year CoStar had it at $1,300.
What's next: As people postpone house purchases, less new apartment construction could pave the way for landlords to raise rents.