Renters have experienced a series of ups and downs in the rental market over the last 10 years. The U.S. Census Bureau has released their American Community Survey estimates for 2023 breaking down demographic and housing changes across the country. Let’s look at the data on renters in Virginia and how things have changed over the last decade.

Demographics

The largest cohort, those 25 to 44 years old, made up most of the renter population in Virginia in 2023 at 47.9%. Renters are typically younger, but there has been an uptick in older generations, who are looking for more convenience and fewer maintenance and home repairs. The shares of renters aged 65 to 74 years old went up from 6.0% to 8.5% between 2013 and 2023, representing the largest growth among all age groups. Renter occupied housing has also become more racially diverse with the number of Black, Hispanic/Latino and Asian households increasing over the last decade.

Geographic

In Virginia, the number of occupied renter units went from 1.05 million in 2013 to 1.09 million in 2023, increasing by 4.27%. Many local markets experienced an increase in the number of renter households with the renter population in Northern Virginia jumping up 10.5% over the last 10 years. Some of the mid-size to smaller markets in the state, such as Charlottesville (+10.0%) and Roanoke (8.66%) saw big gains in renter occupied households. Winchester had the biggest decrease in renter household occupancy levels (-15.0%).

Income and Costs

The median household income for renters in Virginia has grown 46.5% over the decade bringing the median income to $60,380 in 2023. Monthly housing costs also increased during this time with renters paying a median of $1,567 last year, jumping up 44.3% since 2013. With rental costs rising, the level of cost burden, those spending 30% or more of their income on housing, began to shift across income groups. Renters making $50,000 to $74,999 saw cost burden levels increase by 4.4 percentage points, the largest growth compared to all other income brackets. Cost burden rates also went up 3.6 percentage points for those renters making $75,000 or more.

The number of renter households continues to climb in Virginia and with mortgage rates and home prices still elevated and supply shortages in the for-sale market, renting will continue to be a sought-after option for many. Many renters are future home buyers so it’s important to keep an eye on the changing demographic and financial characteristics of this market segment.

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.