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Market Report

Norfolk-Virginia Beach Multifamily Market Report

2Q 2023

Unique Economy Supports Sustained Long-Term
Apartment Demand; New Units Warranted

Apartment fundamentals still relatively strong. Despite a stretch of recalibration over the past year, market conditions in Norfolk-Virginia Beach remain tight by historical standards. Entering the second quarter, vacancy was 5.1 percent, lower than any quarterly measure recorded between 2008 and 2017. Furthermore, annual rent growth over the past 12 months ending in March still outpaced the metro’s long-term average by nearly 3 percent. Although availability is expected to inch up further this year, the region’s 12 universities and large pool of military personnel — many of whom exit the service and enter the private sector annually — will support a well-educated workforce, benefiting long-term renter demand for luxury and mid-tier units. Further fueling this demand, Dominion Energy’s off-shore wind farm will create over 500 construction positions annually through 2026. Upon completion, the operation could support 1,100 new jobs per year in the Hampton Roads area. 
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