Norfolk-Virginia Beach Multifamily Market Report

New defense agenda plays to metro’s strengths. The Norfolk Naval Shipyard, an economic anchor employing about 12,000 people, is exempt from the Defense Department’s recent hiring freeze. Related government plans to invest heavily in the shipbuilding industry raise possibilities for more private-sector maritime jobs in Norfolk and Newport News. As of mid-year, federal back-to-office mandates are exacerbating traffic around military installations, but that may aid renter demand for closer-in locations. The Northern Norfolk submarket containing the naval base stands to benefit most — where vacancy is down 120 basis points year over year to 3 percent — as does the Portsmouth area around the shipyard.