Each quarter, through its Multifamily Market report, the research team at Virginia REALTORS® analyzes the trends and changes in the multifamily market. Here, we share the key highlights from the most recent report for the fourth quarter of 2024.

Construction levels as well as supply of new multifamily units declined in the last quarter of 2024.

Continuing its downward trend, the number of multifamily units under construction dropped to 22,159 in Q4 2024, 27% lower compared to the same time last year. Northern Virginia and Richmond markets had the largest share of new construction in the state. In Q4 2024, supply dwindled as well with just 3,569 new units delivered, a 36% drop compared to a year ago. These trends point towards a reversal from the high activity levels in the multifamily sector in the years following the pandemic.

Multifamily vacancy rates reached their highest level in Virginia since 2015.

The vacancy rate in Virginia’s multifamily market increased to 6.6% in the fourth quarter, up from 6.5% during the same time last year, and is at its highest level since Q4 2015. Garden/low rise (5.6%) multifamily units saw a slight increase in vacancy rates compared to a year ago and vacancy rates for mid/high rise (8.2%) multifamily units remained unchanged. Lynchburg had the highest vacancy rate in the state at 11.3% and Harrisonburg had the lowest multifamily vacancy rate at 2.1%. Over time, vacancy rates are likely to stabilize due to slowing deliveries and relatively stable demand in the market.

Rental prices inched up in Q4 2024.

Rental prices continued their upward trajectory, with the rent for a unit in Virginia climbing to $1,766 in Q4 2024, up 3.7% from the same time last year. The metro markets with the highest increase in effective rent were Winchester (6.6%) and Northern Virginia (4.4%). At the same time, Lynchburg saw a decline (-1.2%) in effective rent over the past year.

For more information on housing, demographic and economic trends in Virginia, be sure to check out Virginia REALTORS® other Economic Insights blogs and our Data page.