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Kindly_Boysenberry_7 OP t1_iu5fb5b wrote

Reply to comment by tigranes5 in RVA Real Estate AMA - "What The H*ll Is Happening?" Edition by Kindly_Boysenberry_7

Well, the rising interest rates will unfortunately knock some people out of buying a home, that's definitely an effect. I think what's forcing rents higher is (i) not enough rental inventory; and (ii) in-migration into Richmond. I saw something somewhere recently - how's that for a documented source! - that said the vacancy rate in Richmond was something insane like 2%. If that's the case, and there is more demand, because more people are moving to Richmond, rents will inevitably rise.

Another impact on rental price increases - I think it's a fairly small one at this point, although it could become a much bigger issue - is what were yearly rentals turning into Airbnb/VRBO-type rentals.

ETA: OK, property management is not my thing, but I hate saying dumb stuff like "I saw something somewhere" so I figured I'd do a quick Google search. This site - I don't know how reputable it is, but it is *some* data - says the average apartment rent in Richmond as of June 2022 was $1,459/month and INCREASED 14.3% YEAR-OVER-YEAR.

https://www.point2homes.com/US/Average-Rent/VA/Richmond.html

That's crazy. And creating huge problems.

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dickinpics t1_iu6cajd wrote

The building I rent in got bought last year by a big nova firm. More than half the building is empty. They don't seem to give a shit.

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Kindly_Boysenberry_7 OP t1_iu6erov wrote

They may be doing that on purpose, because they may want to empty out the building to renovate the units, to then put them back on the market at a much higher rate. Happens a lot when apartment buildings are sold.

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