How the pandemic transformed the Richmond housing market in 5 years
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The pandemic's lasting impact on Richmond is perhaps most evident in our housing market.
Why it matters: Sky-high home prices, elevated mortgage rates and a shortage of houses for sale are pushing homeownership out of reach for many.
Zoom in: This week marks the five-year anniversary of the first Richmond-area resident testing positive for Covid and when former Gov. Northam ordered Virginia schools closed for two weeks, which was followed by additional stay-home orders.
Since then, here are three ways our housing market transformed.
1. Home prices skyrocketed
Cheap borrowing costs and remote work unleashed a homebuying frenzy early in the pandemic — and sent prices soaring.
By the numbers: The median Virginia home price in January was $425,000, up more than 42% from $299,000 five years ago, according to Redfin.
- Home prices in metro Richmond are up about 47% since February 2020, per Zillow data.
- Those who own their houses sit on a mountain of wealth.
The big picture: A stubborn housing shortfall is keeping prices high nationwide, even as buyers have retreated, with 2024 sales hitting a nearly 30-year low.
2. Listings moved fast
Earlier this year, U.S. houses were selling at the slowest pace since March 2020, Redfin reported.
"Homes are taking a long time to sell largely because housing costs are so expensive — but for buyers who can afford it, there are a fair amount of homes to choose from," Redfin's Dana Anderson wrote in the report.
- Yes, but: Richmond seems to be bucking that trend. Houses here have sold on average in less than a month, every month since February 2020.
3. The rise of the $1 million-plus home
Richmond homes listed for over $1 million have more than doubled since 2020, going from 222 listings for over $1 million to 527 last year.
- Meanwhile, the average $1 million listing in Richmond is for homes just under 4,000 square feet — more than 500 square feet smaller than homes listed for $1 million before the pandemic, per Zillow.
What we're watching: Richmond was named one of 2025's hottest real estate markets by two industry publications, so our days of wild housing activity may not be over. Yet.
Go deeper on how the national market changed.