Virginia Beach Investment Property for Sale - 2023 Rental Home Appreciation
The Virginia Beach real estate market is one of the most competitive markets in Virginia. Population growth, location, demand, low inventory, affordability, and appreciation are among the many reasons the Virginia Beach market is so hot. It's so hot, in fact, Virginia Realtors reports most homes to sell in 3 days or less!
Real estate investors interested in a Virginia Beach rental property should act quickly before the competition prices many people out.
Virginia Beach's Attractive Housing Market
Virginia Beach is where the Chesapeake Bay's mouth meets the Atlantic Ocean. It's known for its beaches, boardwalk, excellent school district, and rich history. Virginia Beach is home to the First Landing State Park, which marks the 1607 arrival of the Jamestown colonists.
Real estate investors can find nearly every property type in Virginia Beach's homes for sale. They include everything from condos to multi-family and single-family homes. Whether you're looking to invest in a short-term oceanfront condo or a long-term townhome, there's a Virginia Beach rental property for you.
The Virginia Beach area is home to many great suburbs for investors. They include Chesapeake, Hampton Roads, Newport News, Norfolk, and Portsmouth.
- Chesapeake: Chesapeake is 23 miles southwest of Virginia Beach via I-264 and I-64. Its 22 miles of waterways and natural beauty attract outdoor enthusiasts. The median listing price in Chesapeake is $186/sqft, and the median sales price is $365,000. The median rent is $2,200/month.
- Hampton: Hampton is located 30 miles northwest of Virginia Beach via I-264 and I-64, or the Hampton Roads tunnel. It's an affordable suburb that's also one of the 100 safest mid-sized cities in America. The median listing price in Hampton is $160/sqft, and the median sales price is $250,000. The median rent is $1,520/month.
- Newport News: Newport News is located 40 miles northwest of Virginia Beach, just north of Hampton. It's a family-friendly suburb known for its shopping, dining, and parks. The median listing price in Newport News is $161/sqft, and the median sales price is $259,900. The median rent is $1,500/month.
- Norfolk: Norfolk is located 18 miles east of Virginia Beach via 1-264. It's home to the world's largest naval base and the North American headquarters for NATO. The median listing price in Norfolk is $183/sqft, and the median sales price is $310,000. The median rent is $1,920/month.
- Portsmouth: Portsmouth is located 20 miles east of Virginia Beach via I-264, just east of Norfolk. It's a historic seaport city along the Elizabeth River. The median listing price in Portsmouth is $155/sqft, and the median sales price is $240,000. The median rent is $1,440/month.
Two other areas worth noting are Sandbridge Beach, a coastal neighborhood located on the Currituck Banks Peninsula, and Suffolk, the ninth-largest city in Virginia. No matter what you're looking for, there's a Virginia Beach home for you.
Rental Home Appreciation in Virginia Beach
Virginia Beach has a great rental market with demand for long-term and short-term vacation rentals. Over a third (36%) of households in Virginia Beach are occupied by renters, and the city has a 7% vacancy rate.
According to Realtor, the median listing price in Virginia Beach is $202 per square foot with a median sale price of $349,900. Zillow's Home Value Index reports a 13.6% change since last year. The median rent in Virginia Beach is $2,000 per month.
Virginia Beach also has a strong short-term rental market. According to AirDNA, Virginia Beach has an average Airbnb and Vrbo occupancy rate of 75%. Hosts generate over $4,000 a month in rental income.
Virginia Beach's affordability and rental market create the potential to yield significant returns for homeowners, real estate investors, and property management companies.
Economic Growth in Virginia Beach
Virginia Beach is the largest city in Virginia and grows at a rate of 0.47% yearly. It's already nearly twice the population of Chesapeake, the state's second-largest city. Virginia Beach is also the fifth largest city in the Mid-Atlantic. The largest are New York, Philadelphia, and Washington, DC.
Virginia Beach's primary industries are advanced manufacturing, life sciences, defense, technology, and maritime. The largest employers include the U.S. government, Virginia Beach City Public Schools, Amerigroup Corporation, and Stihl, Inc. These employers provide stability and fuel the city's economy. In fact, the unemployment rate is just 3.1%
The Virginia Beach real estate market offers real estate investors affordability, demand, and a stable economy. These factors provide the foundation needed to create a tremendous investment opportunity.
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