Richmond's new apartment wave is peaking

Richmond is expected to slow the pace of new apartment construction by 2028, a new report finds.

Why it matters: The projected cool-down comes as a national shortage of homes to buy or rent is keeping housing prices high.

By the numbers: Metro Richmond completed construction of 15,936 apartments from 2019 to 2023, per a recent analysis by RentCafe .

• That number is poised to drop to an estimated 15,325 for 2024 to 2028 — a nearly 4% drop.
• That includes around 4,510 apartments on track to be delivered this year.

Meanwhile, the region's population, the fastest growing in the state, is projected to keep growing .

The big picture: A rush of new apartments , financed when interest rates were lower, recently helped to ease rent hikes .

Yes, but: Most new apartments are amenity-packed and perched in sweet locations — not the affordable rentals many people want.

• Those luxury apartments have helped push the average cost of rent beyond what's affordable for around half of all Richmond renters .
• The average rent in Richmond is now $1,513 a month, according to the latest CoStar data . Last year CoStar had it at $1,300 .

What's next: As people postpone house purchases , less new apartment construction could pave the way for landlords to raise rents .