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Mid-Atlantic Real Estate Investment Market Report: July 2020

How to attract Generation Z renters. Each generation has its own quirks. Gen Z is no different and appears to be more practical than others. While we’ve seen that some generations are happy to rent forever, Generation Z sees it as a stepping stone. In fact, 97 percent of them want to buy a home someday. Now, most of them won’t leave their parents’ home and immediately buy a house. This means you still have a chance to reach them. With this in mind, let’s cover how multifamily operators can reach Gen Z where they are spending most of their time – online.

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Market Activity

Richmond, VA
Market Overview

According to Cushman and Wakefield, Richmond’s unemployment rate reached 10.7 percent in Q2, surpassing the previous peak of 8.7 percent set during the Great Recession. Since March, the region’s industrial market activity has slowed as several deals were delayed or canceled. Carvana stopped its plans for a $25 million vehicle inspection and processing center near Chester.  That said, activity began to accelerate towards the end of the second quarter.

751
Homes Sold
$258,000
Avg. Home Price
$1,266
Median Rent
U.S Census Bureau: second quarter 2020
4.4%
Rental Vacancy Rate
0.4%
Homeowner Vacancy Rate
8.4%
State Unemployment Rate
Metro Area Unemployment
Blacksburg-Christiansburg, VA
7.6%
Charlottesville, VA
8.1%
Harrisonburg, VA
7.8%
Kingsport-Bristol-Bristol, TN-VA
9.2%
Lynchburg, VA
7.9%
Richmond, VA
9.2%
Roanoke, VA
8.2%
Staunton-Waynesboro, VA
7.0%
Virginia Beach-Norfolk, VA-NC
9.6%
Washington-Arlington, DC-VA-MD 
8.4%
Winchester, VA-WV
7.0%

Market Activity

Philadelphia, PA
Market Overview

Since March, the region has lost 398,700 jobs due to the temporary shutdown of the local economy. This contributed to Philadelphia’s unemployment rate increasing to 14.4 percent, according to a Cushman and Wakefield report. Top performing jobs for the region during this time were manufacturing, transportation and warehousing.

1,107
Homes Sold
$250,000
Avg. Home Price
$1,898
Median Rent
U.S Census Bureau: second quarter 2020
7.1%
Rental Vacancy Rate
0.6%
Homeowner Vacancy Rate
13.0%
State Unemployment Rate
Metro Area Unemployment
Allentown-Easton, PA-NJ
13.9%
Altoona, PA
11.8%
Bloomsburg-Berwick, PA
10.1%
Chambersburg-Waynesboro, PA
11.3%
East Stroudsburg, PA
17.9%
Erie, PA
14.4%
Gettysburg, PA
10.3%
Harrisburg-Carlisle, PA
11.5%
Johnstown, PA
12.9%
Lancaster, PA
11.2%
Lebanon, PA
11.8%
New York-Jersey City, NY-NJ-PA
17.0%
Philadelphia-Camden, PA-NJ-DE
14.0%
Pittsburgh, PA
12.6%
Reading, PA
13.1%
Scranton-Wilkes-Barre-Hazleton, PA 
15.3%
State College, PA
8.4%
Williamsport, PA
12.2%
York-Hanover, PA
11.5%
Youngstown-Warren, OH-PA
13.3%

Market Activity

Washington D.C.
Market Overview

Colliers International reports that office demand was down in the second quarter, with 275,000 square feet returning to the market. For the first time since 2017, all three classes of buildings (A, B, and C) registered negative absorption. Experts at the firm believe that the negative absorption and continued delivery of new inventory to the market caused vacancy to increase to over 15 percent. This is not likely to be the high watermark as the impacts of COVID-19 have yet to be fully felt.

796
Homes Sold
$620,000
Avg. Home Price
$2,321
Median Rent
U.S Census Bureau: second quarter 2020
6.8%
Rental Vacancy Rate
0.9%
Homeowner Vacancy Rate

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