Housing report for Richmond, VA

Richmond Affordable Housing Report:
Q1 2023

Last updated on Apr 1, 2023

Housing overview of Richmond, VA

1,282,067

population in Richmond, VA

672,599

workers in Richmond, VA

573,281

housing units needed

Richmond's burgeoning population and dynamic economy have created a significant demand for workforce housing. In this market report, we analyze the current state of the city's housing market, emphasizing the growing need for affordable and immediate housing.

Richmond has a housing gap of 47,152 units; new construction is a drop in the bucket

Population:Across metro Richmond the population has risen to 1,282,067.
Workforce:Richmond's workforce has grown to 672,599, indicating strong economic growth and increasing demand for housing.
Housing Unit Demand:To accommodate the population and workforce, Richmond requires 573,281 housing units.
Current Housing Stock:The metro area currently offers 526,129 housing units, resulting in a deficit of 47,152 homes.

Richmond workers would need to earn an extra 29.11% to afford the median rental

Median Rental Price:The median rent for an apartment in Richmond is $1,417, highlighting increasing rental prices.
Income Needed to Afford a Rental:A tenant needs to make at least $51,012 and pay $2,834 upfront to move-in (first month’s rent and security deposit). Typically, to qualify for a home, a landlord requires 3x rent in income, in addition to credit score minimums and eviction checks. Finally, most apartments charge an application fee.
Median Income in Richmond:The city's median income is $36,163, demonstrating a significant affordability gap.
Affordability Gap:The affordability gap in Richmond stands at $14,849. This means that workers need to earn 29.11% more to qualify and afford the median rental in the greater Richmond area.

Expanding affordable workforce housing in Richmond

So how do we house the growing population of healthcare workers, drivers, technicians, and care workers that make up Richmond’s workforce?

Solution 1: Build more housing

Despite the evident need for housing, only 1,245 permits have been issued so far in 2023, indicating a slow response from the market to address this demand. This shortage has led to increased rental prices

Solution 2: Relocate workers farther outside of the city

We believe workers in our community deserve to live in our community. While some may desire to relocate further their place of work, this is not a viable solution for all workers.

Solution 3: Do more with existing housing

We can do more with our existing housing to meet the needs of the metro-area population. There are exciting developments to address housing shortages and affordability challenges by increasing housing density. Some examples include converting single-family into multi-family homes, commercial to residential conversions, housing ADUs, co-living, and shared housing. At PadSplit, we are growing the country’s leading shared housing marketplace.

Sources: Census, Bureau of Labor & Statistics, ApartmentList, PadSplit

Shared Housing is a fast, cost-effective way to scale affordable housing for the workforce

PadSplit was founded five years ago and has grown to become the country’s largest shared housing marketplace. Real estate investors, homeowners, and community partners work with PadSplit to provide affordable, dignified housing to workers.

To learn more, check out the following:

Hosting on PadSplit PadSplit impact report Rooms for rent in Richmond