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tigranes5 t1_iu5e04s wrote

Do you think the rising interest rates will force more people in Richmond to rent instead of buy, thereby forcing average rents higher? It seems like the original consensus was that rent increases would be flat this year.

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Kindly_Boysenberry_7 OP t1_iu5fb5b wrote

Well, the rising interest rates will unfortunately knock some people out of buying a home, that's definitely an effect. I think what's forcing rents higher is (i) not enough rental inventory; and (ii) in-migration into Richmond. I saw something somewhere recently - how's that for a documented source! - that said the vacancy rate in Richmond was something insane like 2%. If that's the case, and there is more demand, because more people are moving to Richmond, rents will inevitably rise.

Another impact on rental price increases - I think it's a fairly small one at this point, although it could become a much bigger issue - is what were yearly rentals turning into Airbnb/VRBO-type rentals.

ETA: OK, property management is not my thing, but I hate saying dumb stuff like "I saw something somewhere" so I figured I'd do a quick Google search. This site - I don't know how reputable it is, but it is *some* data - says the average apartment rent in Richmond as of June 2022 was $1,459/month and INCREASED 14.3% YEAR-OVER-YEAR.

https://www.point2homes.com/US/Average-Rent/VA/Richmond.html

That's crazy. And creating huge problems.

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dickinpics t1_iu6cajd wrote

The building I rent in got bought last year by a big nova firm. More than half the building is empty. They don't seem to give a shit.

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Kindly_Boysenberry_7 OP t1_iu6erov wrote

They may be doing that on purpose, because they may want to empty out the building to renovate the units, to then put them back on the market at a much higher rate. Happens a lot when apartment buildings are sold.

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Charlesinrichmond t1_iu5zj61 wrote

We have a huge structural shortage of rentals in Richmond. 5% is what I've always heard as the functionally zero vacancy number. 2% is just absurd.

A lot of stuff is getting built but it's getting filled up as fast as people build it.

We need to make it legal to build more housing. Not just the big five plus ones but the fourplexes sixplexes and duplexes and adus that people actually want to live in

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girlmuchtoomuch t1_iu6y3sm wrote

How do you think we go about making that happen? I for one would love to put a ADU on my property but hear getting it passed through zoning is virtually impossible.

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Charlesinrichmond t1_iu70ywt wrote

City is actually getting a lot more open on that I'm amazed. They are looking to change the zoning

What you can do is tell your city counselor you want to see it happen. Planning department wants it city council just has to approve it

This is such an amazing change in perspective from the city that my mind is boggled. Their old attitude was that they hated to see buildings built on empty lots in the museum district and fan and they have done 180° turn. It's amazing if we all keep pushing it will happen

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girlmuchtoomuch t1_iu71x1c wrote

Do you think it's the same in Chesterfield County? I talked to someone in zoning over the summer and he basically said none had ever been approved to his knowledge. That was mind boggling to me.

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Charlesinrichmond t1_iua01ed wrote

no clue, but I'd be very pessimistic in Chesterfield. None have ever been approved sounds like don't bother.

The city used to have that approach, and has now actually seemed to realize it's idiotic, and is permitting ADUs with SUPs, and moving to change the code. This is awesome for homeowners and for renters, which should make it a no brainer, so my mind is utterly boggled that it's happening.

So while I'd guess Chesterfield would be the very last place in the area to approve it, who knows? Stil call your representatives

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