Renting in Richmond is only about 20% cheaper than owning
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Renting in Richmond is only about 20% cheaper than owning a home, according to a LendingTree analysis.
Why it matters: The high cost of rent is making it increasingly difficult for prospective homebuyers to save for a down payment on a home, as Sen. Schuyler VanValkenburg, who represents Henrico, noted in the General Assembly this week.
The big picture: Renting is cheaper than owning a home in all 100 of the largest U.S. metro areas, LendingTree found in its analysis.
- On average, homeowners nationwide with a mortgage pay around 37% more per month than renters, researchers found.
Yes, but: In Richmond, the median monthly gross rent of $1,546 in 2024 was slightly higher than the national median rent of $1,487, per the report.
- RVA's median monthly mortgage for 2024 was $1,897, lower than the national median of $2,035.
- For 2026, the average rent in Richmond varies by real estate site. Rent Cafe puts it at $1,574, Zillow at $1,600 and Rent Hop at $1,745.
Threat level: 42% of Virginia renters were considered rent-burdened last year, meaning they pay 30% or more of their income on rent, RadioIQ reported.
- And Richmond rents are rising — and projected to continue rising — faster than the national average, two industry reports found last year.
- To afford the rent in Richmond and keep housing cost at 30%, two minimum-wage earners would have to work 48 hours a week each, Realtor.com found in its report.
Meanwhile, anti-"rent gouging" legislation — which would've allowed local governments to cap annual rent increases at 3% — failed in the General Assembly this week, The Richmonder reports.
- "Our eviction rate is very high. The increase in costs is going through the roof," said Richmond City Councilwoman Ellen Robertson at the hearing.
Zoom out: In 22 of the 100 largest metros, owning costs at least 50% more each month than renting, including utilities, fees and taxes.
What they're saying: "The cost disparity here could be enough to convince someone that they'll never be able to own a home in some areas, and — unfortunately — they may be right," said Matt Schulz, LendingTree's chief consumer finance analyst, in a statement.
- Homebuyers may have to move to another city to find a place within reach, he says.
What we're watching: How much rent will rise in RVA this year. Last year, Richmond had the third-highest rent growth in the nation, CoStar found.