Poised for Strong Growth in 2021
In Virginia REALTORS®’ first quarterly report on the multifamily rental market, we find that large multifamily rental buildings (50+ units) in most markets in the state have generally had stable vacancy rates and rents throughout the pandemic. While there has been some weakening in high-cost urban markets, conditions are good for a strong rebound in the rental market in 2021.
Key highlights from the report:
- Despite widespread concerns about rent challenges and vacancy rates in the multifamily rental market, conditions have been fairly resilient in most markets across Virginia. Some property managers and landlords have had to make concessions or work out payment plans with tenants. However, overall rents have been stable or have risen in Q1 2021.
- The state’s highest-cost urban markets have experienced the most stress during the pandemic. There were some modest declines in rents and increases in vacancy rates through Q1 2021, particularly in Northern Virginia.
- Demand for rental housing in suburban locations has been strong during the pandemic, as more people have been working from home and desire more space. In Q1 2021, rent growth was relatively strong in suburban markets across the state.
- The multifamily rental market in Virginia should be strong in 2021. An opening up of the economy and an incredibly tight for-sale market will fuel rental demand and promote strong renter demand.
*Information as of 04/15/2021