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 insights from the most recent report for the first quarter of 2026.

Delivery of new multifamily units slowed significantly in the first quarter of 2026 along with a declining construction pipeline.

Deliveries of completed multifamily units declined, with 1,108 multifamily units delivered in Q1 2026, which was 75% fewer units delivered compared to the same time last year. There were 23,221 multifamily units under construction in Q1 2026, 3% lower compared to the same time last year. Among the metro areas, Northern Virginia and Richmond had the largest share of new multifamily construction in the Commonwealth.

Net absorption continued its downward trajectory.

Net absorption – the difference between number of units leased and number of units vacated – was positive in Q1 2026 (1,172 units), meaning more space was leased than vacated in the market. However, net absorption slowed down from the prior year for the fourth quarter in a row. This indicates that while there is demand in the rental market, it is slowing down from previous periods. While Mid/High rise apartments saw positive net absorption, Garden style/low rise apartments saw more units being vacated than leased out at the start of the year. Richmond (672 units) led the list of Virginia metro areas for the highest number of leased spaces this quarter, while the Northern Virginia and Roanoke multifamily markets experienced negative absorption in the first quarter of 2026.

Rental prices continued to go up, with variability across different local markets.

The average effective rent per unit in Virginia was $1,806 in Q1 2026, increasing 0.4% from the same time last year, indicating that rental prices continue to climb. Rental prices went up in seven of the nine metro areas of the Commonwealth. Hampton Roads topped this list by experiencing a 4.2% increase in rent while Northern Virginia saw the highest rent decline (-1.6%).

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.