Market Report
Norfolk-Virginia Beach Multifamily Market Report
1Q 2026
Tourism and Shipbuilding Reinforce Outlook
for Apartments Despite Some Leasing Headwinds
Submarket employment trends may aid local demand. Most major submarkets achieved vacancy rate declines of 100-plus basis points in 2025. Going forward, domestic travel will help the tourism market minimize employment backsliding in Virginia Beach, where the multifamily vacancy rate measured around 3 percent in December. Expanded hotel demand last summer points to an active 2026, with more vacationers expected from a growing nearby Richmond. Possible reduced travel from Washington, D.C., may somewhat dampen that benefit. In the heavy-industry-oriented Newport News submarket, however, net absorption turned negative in late 2025. Job losses in the heavy industry sector last year likely impacted the local Class C renter base, although hiring from shipbuilders is already rebounding to help meet a wave of new government contracts. This may shore up demand near industrial hubs. At the market level, dissipating supply pressure compensates for limited demand growth, tightening vacancy.
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