Richmond, VA Multifamily Market Report | Cushman & Wakefield | Q1 2026

Market Overview

‍Richmond's multifamily market entered Q1 2026 with steady fundamentals as absorption kept pace with deliveries and the development pipeline remained active. Total inventory reached 96,279 units following 498 deliveries during the quarter, while 4,425 units remained under construction across all 10 submarkets. Net absorption totaled 469 units, with vacancy declining 30 basis points year-over-year to 9.2% as supply and demand remained in balance. Western Henrico continued to lead development activity with 1,488 units under construction, while the Central submarket carried the largest pipeline at 1,837 units with several major projects underway in Scott's Addition and the Diamond District. Effective rents rose 2.0% year-over-year to $1,603 per unit ($1.80 per square foot), with East Richmond/Henrico (5.3%), Hanover (4.8%), and Midlothian (2.7%) posting the strongest submarket rent growth. On the investment side, sales volume topped $203 million in Q1, highlighted by Innsbrook Square (305 units, $81.7M) and Innslake Place (221 units, $51.3M), with Western Henrico accounting for 56.9% of total sales volume since the start of 2025. Richmond's economic momentum remained strong, with the region outpacing peer markets in job growth at 18.1% above February 2020 levels versus the U.S. average of 13.4%.

‍About Cushman & Wakefield

‍Cushman & Wakefield is a leading global commercial real estate services firm with approximately 53,000 employees across more than 350 offices in nearly 60 countries, reporting $10.3 billion in revenue in 2025. Their quarterly Richmond Multifamily MarketBeat report, produced in partnership with Thalhimer, tracks vacancy, absorption, effective rents, deliveries, and construction activity across 10 submarkets to help owners, developers, and investors assess market conditions and opportunities. To read the full report, click here.