Development

With easy access to the James River, hiking trails and a burgeoning culinary scene, the Richmond region has won numerous accolades for its quality of life. The city remains a top destination for college graduates and young professionals, as well as families and retirees. Apartment demand is fueled by both a growing millennial population and increasing number of empty-nesters who are downsizing. Renters continue to seek accessible apartment communities that are highly walkable with comfortable amenities. As a result, both urban and suburban markets are experiencing an influx of rental demand. The Richmond apartment market continues to experience rising rental rates and interest from out-of-town investors. Apartment rents in Richmond have increased every year since 2012 but remain relatively affordable. The average effective rent reached $1,113 per unit after increasing approximately 3.8 percent over the past 12 months. Accordingly, developers and investors have responded to the steady demand and continue to be bullish on the Richmond market, especially for apartments. There are currently more than 4,000 apartment units under construction, marking a post-recession peak for construction activity. Apartment sales have accounted for more than 50 percent of all commercial real estate transactions during the first half of 2019. Additionally, institutional …