The median price of a home in the Richmond area has reached $394,000, as real estate prices continue to climb. In the first quarter of 2024, the median sale price of a single-family home, condominium or town house rose 9% compared with a year earlier, according to a new report from the
Richmond Association of Realtors . Inventory is low, wealthy new residents are snapping up available houses, and older owners are reluctant to sell. “The demand continues to outstrip the supply,” said Laura Lafayette, CEO of the Richmond Association of Realtors. Prices have risen the most in the more distant suburban and exurban corners of metro Richmond. In Goochland County, the median price soared 18% to $640,000. In Powhatan, it rose 11% to $410,000.
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Closer to the city’s center, buyers can find less expensive homes. The median price was $350,000 in Richmond, $383,000 in Henrico County and $391,000 in Chesterfield County. Rising prices mean fewer people can buy.
Gen Zers often cannot afford to buy and are waiting longer and saving up. Some are borrowing from their parents or cutting other costs to pay their mortgage. It’s not just the cost of homes that has increased. The cost of financing remains high, too — a 30-year interest rate was 7.2% last month. That means the cost to actually pay for a home has increased even more. Between 2020 and 2024, the cost of a home here increased 24%, but the income needed to buy a home surged 76%, Lafayette said. Wages have increased in the Richmond area during that time, but not nearly enough to keep up with home prices. Errors in the financial aid form known as FAFSA have made choosing a college a headache. Education leaders worry fewer students will enroll. High interest rates are keeping older residents from downsizing. The number of houses for sale this year dropped from a year earlier. There’s so much demand for homes, every home for sale in the area would sell within 1.6 months, according to the association’s report. In a more balanced market, it would take about four months for every available house to go, Lafayette said. While costs remain high, the competition among buyers has eased somewhat. Two years ago, buyers were paying on average 10% more than the asking price. Now, buyers are paying about the same level as the asking price. “You still have to bring a really good offer if you want to secure that contract,” Lafayette said.
Richmond's Manchester neighborhood, seen here in a drone image on July 17, offers a variety of housing, ranging from single-family homes to apartments. As real estate prices continue to climb, the median price of a home in the Richmond area has reached $394,000. Increasing home prices is nothing new — prices have risen steadily for the past decade, when the median price of a home here was half of what it is now. It’s possible the surge is slowing. For the past nine months, the median price of a home in the Richmond area has remained flat. But Lafayette cautioned that nine months isn’t long enough to draw a conclusion. Housing activity is usually the highest in the spring, and prices could rise again. For the market to calm down, builders need to erect more homes at varying price points so the supply can catch up with demand. But that’s not enough to fix the problem, Lafayette said. As long as interest rates are high, homeowners will be reluctant to sell. The news is not all bad. People are moving here, injecting money into the economy and tax revenue into local coffers. “The good news is people want to live in metropolitan Richmond,” Lafayette said.
Top 5 weekend events: Friday Cheers, ¿Qué Pasa? Festival, RVA Taco Fest
Friday Cheers
Canadian singer-songwriter Bella White kicks off the Friday Cheers outdoor concert series, running almost every Friday night in May and June, on Brown’s Island. 6:30-9:30 p.m.; gates open at 6 p.m. 500 Tredegar St. $10 in advance, $15 at door. www.myticketstobuy.com . ¿Qué Pasa? Festival
Celebrate the beauty and diversity of Hispanic and Latin American cultures at the ¿Qué Pasa? Festival. Enjoy a day filled with Latin music and food, desserts and drinks, an artisan market offering homemade crafts, gifts and more, and a kids’ area with live artist exhibitions and hands-on activities. Noon to 8 p.m. Brown’s Island, 500 Tredegar St. Free to attend; pay as you go. www.quepasafestival.com . Arts in the Park
Saturday and Sunday Experience the beauty of an outdoor gallery at Richmond’s award-winning arts and crafts show Arts in the Park. The two-day event will feature over 350 artists from across the country exhibiting and selling their work, from paintings and ceramics to furniture, metal, crafts, pottery, sculpture, photography and more. There will also be local food vendors. 11 a.m. to 6 p.m. Saturday and 11 a.m. to 5 p.m. Sunday. At the Carillon in Byrd Park, 1301 Blanton Ave. Free to attend; pay as you go. www.richmondartsinthepark.com . RVA Taco Fest
RVA Taco Fest is bringing 10 food trucks to Hardywood West Creek, for a day of food and fun. Grab tacos from local vendors like 1115 Mobile Kitchen, Arroz, El Guapo, and Happy Arepas, plus Mexican-style lagers from Hardywood. See live performances from bands like Weekend Plans, and The Party Favors. Noon-6 p.m. 820 Sanctuary Trail Drive. Free entry; pay as you go. www.hardywood.com . Asian American Celebration
The Asian American Celebration returns with music and traditional dance performances, hands-on activities, culture booths, food, merchandise and a kids’ village. Greater Richmond Convention Center, 403 N. Third St. 11 a.m.-7 p.m. Free entry; pay as you go. https://aasocv.org/ . Get email notifications on {{subject}} daily!
