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Mid-Atlantic Real Estate Investment Market Report: March 2020

impact of gen z

Impact of Gen Z on the Multifamily Housing Industry. Watch out, there’s a new generation defining the future of the multifamily industry. While millennials make up 56 percent of the rental market, Gen Z comprises 74 million people, making it equal in size to millenials and baby boomers. Even though they may be young, they have money to spend. They contribute $44 billion to the U.S. economy and it’s only a matter of time before they head into the rental market.

Learn more about Gen Z's Impact

Market Activity

Richmond, VA
Market Overview

The region expects an increase of nearly 48,000 jobs, specifically in the healthcare sector. Professional services jobs, like accountants and software developers, is also expected to see growth. In addition, home sales and new construction should see an increase, but for a first-time homebuyer or millennial, options may be limited due to affordability.

496
Homes Sold
$232,000
Avg. Home Price
$1,112
Median Rent
U.S Census Bureau: fourth quarter 2019
6.8%
Rental Vacancy Rate
1.3%
Homeowner Vacancy Rate
2.6%
State Unemployment Rate
Metro Area Unemployment
Blacksburg-Radford, VA
3.2%
Charlottesville, VA
2.7%
Harrisonburg, VA
2.8%
Kingsport-Bristol-Bristol, TN-VA
4.2%
Lynchburg, VA
3.6%
Richmond, VA
3.1%
Roanoke, VA
3.1%
Staunton-Waynesboro, VA
2.7%
Virginia Beach-Norfolk, VA-NC
3.3%
Washington-Alexandria, DC-MD-WV
3.1%
Winchester, VA-WV
2.9%

Market Activity

Philadelphia. PA
Market Overview

Strong pre-leasing, constrained core development keep vacancy on downward trend. Delivery volume for the region will fall below 1.5 million square feet, just two years after hitting a peak with nearly double that volume. 85 percent of the space coming to market is pre-leased, and the market is on solid footing with healthcare and life science firms expanding at a rapid pace. The largest project under construction in the area is 427,000, the Sora West project, which is fully pre-leased.

1,215
Homes Sold
$220,000
Avg. Home Price
$1,650
Median Rent
U.S Census Bureau: fourth quarter 2019
7.1%
Rental Vacancy Rate
1.6%
Homeowner Vacancy Rate
4.7%
State Unemployment Rate
Metro Area Unemployment
Allentown-Easton, PA-NJ
5.0%
Altoona, PA
5.4%
Bloomsburg-Berwick, PA
5.8%
Chambersburg-Waynesboro, PA
4.4%
East Stroudsburg, PA
6.2%
Erie, PA
5.8%
Gettysburg, PA
3.9%
Harrisburg-Carlisle, PA
4.1%
Johnstown, PA
6.5%
Lancaster, PA
3.9%
Lebanon, PA
4.5%
New York-Jersey City, NY-NJ-PA
3.9%
Philadelphia-Wilmington, PA-MD
4.6%
Pittsburgh, PA
5.2%
Reading, PA
5.0%
Scranton--Wilkes-Barre--Hazleton, PA
6.3%
State College, PA
3.8%
Williamsport, PA
6.0%
York-Hanover, PA
4.3%
Youngstown-Warren, OH-PA
6.9%

Market Activity

Washington D.C.
Market Overview

According to Institutional Property Advisors, Washington D.C., can offer multifamily investors the potential for one of the most recession-proof markets in the nation. During the Great Recession, Washington, D.C.’s apartment market maintained full-year positive rent growth. This possible risk protection during a downside is just another reason many investors will support strong acquisition activity throughout the market place in 2020.

666
Homes Sold
$593,000
Avg. Home Price
$2,233
Median Rent
U.S Census Bureau: fourth quarter 2019
5.8%
Rental Vacancy Rate
0.9%
Homeowner Vacancy Rate
Homes sold and average home price data is from Redfin.com. Median Rent data is from rentcafe.com.

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