Richmond

VARichmond Metropolitan Statistical Area

Real Estate Market Analysis

Q3 2025 Report
$391,035 (June 2025)
Median Home Price
~1.36 million (metro area, 2024)
Population
$74,000 (Richmond metro, 2024 est.)
Median Income
Richmond Public Schools: C+ (Niche, 2024); surrounding counties (Henrico, Chesterfield) rated B to A-
School District Rating

Market Overview

Property Values

$391,035 (June 2025)
Median Home Price
$248 (June 2025)
Price per Sq Ft
+7.8% (June 2024–June 2025)
YoY Change

Market Performance

Days on MarketHomes selling at record speed; specific DOM not provided, but sellers have upper hand[2]
Market TypeStrong seller's market
Months of Supply1.8 months (April 2025)

Sales Activity

Sales Volume1,282 homes for sale in June 2025 (+3.6% MoM)[4]
Metro AreaRichmond Metropolitan Statistical Area
Population~1.36 million (metro area, 2024)

Economic Indicators

Employment & Growth

Unemployment Rate3.2% (Richmond metro, May 2025, per BLS)
Job Growth Rate2.1% (2024–2025 est., metro area)
Median Household Income$74,000 (Richmond metro, 2024 est.)

Major Employers

  • VCU Health System
  • Capital One Financial
  • Dominion Energy
  • Altria Group
  • HCA Virginia Health System

Demographics

~1.36 million (metro area, 2024)
Population
37.1 years (metro, 2024)
Median Age
+52,000 residents (2020–2024)[1]
Population Growth
38% bachelor’s degree or higher (metro, 2024)
Education Level

Family Composition

Mix of young professionals, families, and retirees

Key Industries

HealthcareFinanceEducationGovernmentManufacturing

Education

School District

Richmond Public Schools: C+ (Niche, 2024); surrounding counties (Henrico, Chesterfield) rated B to A-
District Rating

Top Schools

  • Maggie L. Walker Governor’s School
  • Open High School
  • Henrico High School (International Baccalaureate)

Higher Education

  • Virginia Commonwealth University (VCU)
  • University of Richmond
  • Virginia Union University

Infrastructure & Development

Major Projects

  • Diamond District redevelopment (mixed-use, sports, housing)
  • Greater Richmond Transit Company (GRTC) expansion

Transportation

  • Pulse Bus Rapid Transit expansion
  • I-64/I-95 interchange upgrades

Planned Developments

  • Multiple mixed-use and multifamily projects in Scott’s Addition, Manchester, and downtown

Lifestyle & Amenities

Recreation

  • James River Park System
  • Byrd Park
  • Lewis Ginter Botanical Garden

Dining & Entertainment

  • Scott’s Addition breweries
  • Carytown restaurants
  • Broad Street Arts District

Cultural Attractions

  • Virginia Museum of Fine Arts
  • Richmond Symphony
  • Historic Shockoe Bottom

Investment Analysis

Investment Opportunities

  • Strong appreciation potential in urban neighborhoods
  • High rental demand from students and young professionals
  • Value-add multifamily and mixed-use redevelopment

Growth Outlook

Above-average home price and rent growth expected through 2025[2][3]

Market Risks

  • Affordability constraints for buyers
  • Rising property taxes and insurance costs
  • Potential for overbuilding in select submarkets

Rental Market

Low vacancy, strong demand, rising rents

Marketing Intelligence

Target Demographics

  • Millennials and Gen Z (first-time buyers)
  • Remote workers relocating from higher-cost metros
  • Investors seeking rental properties

Marketing Channels

  • Zillow, Realtor.com, Redfin
  • Instagram and Facebook ads
  • Local real estate events

Pricing Strategies

List at or just below market to drive multiple offers in hot neighborhoods

Common Objections & Response Strategies

Objection: Home prices are too high for my budget.

Response Strategy:

Highlight lower property taxes, cost of living advantages, and potential for appreciation.

Objection: Too much competition from other buyers.

Response Strategy:

Advise on pre-approval, escalation clauses, and flexible terms to strengthen offers.

Objection: Limited inventory in preferred neighborhoods.

Response Strategy:

Expand search to adjacent areas and consider off-market opportunities.

Professional Recommendations

1

Educate buyers on market realities and creative financing options.

2

Leverage professional marketing and staging to maximize seller returns.

3

Build relationships with local lenders and contractors for value-add deals.

4

Monitor new inventory and off-market opportunities for clients.

5

Stay informed on local policy and development changes impacting supply and demand.

Competitive Analysis

Comparable Markets

  • Raleigh, NC
  • Charlotte, NC
  • Nashville, TN

Market Positioning

Richmond is positioned as an affordable, high-growth alternative to larger Southeast metros.

Competitive Advantages

  • Lower median home price than peer metros
  • Strong job growth and in-migration
  • Rich cultural and lifestyle amenities

Price Comparison

Richmond’s median home price ($391K) is below Raleigh ($450K) and Charlotte ($420K) as of mid-2025.

Investment Metrics

5.2%–6.0% (multifamily, 2025)
Cap Rates
5.5%–6.5% (single-family rentals, 2025)
Rental Yields
17–19 (metro, 2025)
Price-to-Rent
Positive cash flow possible in select neighborhoods with strong rental demand
Cash Flow
5%–7% annual home price growth projected through 2025
Appreciation

Buyer Journey Insights

First-Time Buyers

Face affordability and competition challenges; benefit from down payment assistance and flexible loan programs.

Move-Up Buyers

Leverage equity gains; seek larger homes in top school districts or suburbs.

Downsizers

Target historic neighborhoods and low-maintenance condos/townhomes.

Investors

Focus on value-add multifamily, SFR, and short-term rentals near universities.

Relocators

Attracted by affordability, job growth, and lifestyle; often remote workers from higher-cost metros.

This city analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

Related Market Intelligence

Explore connected markets and opportunities