Rental Market Trends From the Last Decade: More Renters, A Shift in Age, and Fewer People Living Alone
January 18, 2023
The rental market in Virginia has been evolving over the last several years. Let’s take a closer look at some of the key shifts in the market based on data from the U.S Census Bureau’s American Community Survey.
Renter growth in Virginia outpaced the U.S. over the last decade. As of 2021, there were more than one million renter households in Virginia which is 10.5% more renters than there were in 2011. While this trend of more renters overall is not unique to Virginia, our growth rate exceeded the nation, which had 8.4% more renters over the last ten years. This is likely driven by a combination of factors, from Virginia having a larger population of young adults than many other states (more likely to be renters), to having affordability and supply challenges in the for-sale market in several regional markets in the commonwealth (would-be buyers renting longer). The growth in renter households in Virginia suggests that the demand for rental housing has also increased, and as we’ve seen over the last couple years, upward pressure on rents continues to be a factor in many markets around the state.
Larger share of 55+ renters in Virginia than ten years ago. As of 2021, about one out of every five renters (21.6%) in Virginia were between 55 and 74 years old. Ten years ago, about one out of every six renters were in this age range (17%). Renters under 35 years of age still make up the largest share of renters in Virginia (34.8%), but this is down from where it was in 2011 (38.8%). This shift to more renters aging into their senior years suggests that demand for senior rental housing will continue to be a growing segment of the market in the commonwealth.
Big jump in married couple renters, and renters with roommates. In 2021, married couple renters accounted for more than one out of every three renter households in Virginia, making it the most common renter household type. This is up from 25.2% of all renters ten years ago. Non-family members not living alone, which represents unmarried couples, and roommates, accounted for 28.9% of renters in Virginia in 2021, up from 11.6% in 2011. Gains in these two household types suggest that larger rental units; for example, units with multiple bedrooms, are likely increasing in demand in many markets around the state.
For more information on demographic and economic trends in Virginia, be sure to check out Virginia REALTORS® other Economic Insights Blogs and our Data Page.
You might also like…
Virginia Sees Slowest April Housing Market in More than a Decade
By Robin Spensieri - May 23, 2023
But tight inventory conditions keep the market competitive and home prices high According to the April 2023 Virginia Home Sales Report released by Virginia REALTORS®, there were 8,252 homes… Read More
The State of Commercial Real Estate in the Current Economy
By Sejal Naik - May 17, 2023
Commercial real estate is the oft-forgotten half of the U.S. real estate market. This sector, which amounts to about $20 trillion, has been under continuous spotlight following the… Read More
Key Trends: Q1 – 2023 Multifamily Report
By Abel Opoku-Adjei - May 17, 2023
Rental demand in Virginia remains strong, though the intensity has eased over the past year or so. Vacancy rates are up and rent growth has slowed across property… Read More