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Why rent prices are rising in Metro Richmond

Posted at 6:55 AM, Apr 19, 2022
and last updated 2022-04-19 12:51:23-04

RICHMOND, Va. — Metro Richmond rent is seeing a big spike this season, according to a new report from Rent.com.

The new data released on Tuesday revealed the price for a one-bedroom apartment in the River City has reached nearly $1,400. The price surge accounts for an 18% increase over last year.

Brian Carberry, Rent.com’s senior managing editor, said normally our area experiences a 3 % to 5% increase in rent prices over the summer when most people move. Yet, the area is seeing a double digit rent increase.

The most expensive neighborhoods to find an apartment includes Brandermill, Manchester, Innsbrook, Stoney Point and Scott’s Addition, according to the report.

Carberry explained that there are several factors contributing to higher rent prices. Of course, inflation plays a part.

It’s also hard to miss the massive construction projects popping up across Central Virginia. These projects were built during a time of shortages both in staffing and materials throughout the pandemic.

Therefore, the cost for construction is higher.

“They have to make that money up somehow,” Carberry stated. “In addition, a lot of these newer properties are built in areas that already in demand and desirable and they’re going to be more luxurious.”

Carberry said it’s not just a supply and demand issue driving up prices.

“There is a need for more affordable housing, but that has to come in forms of tax credits or incentives for builders,” he explained. “Otherwise, they are going to try and get as much as they can for a property because it financially makes sense for them to do so.”

Rent.com recommends searching for a unit in a less desirable or less popular neighborhood to find cheaper rent. Be willing to give up some amenities like a gym or a pool.

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