Hampton Roads Faces Significant Rent Growth Amid National Slowdown
While the rest of the nation experiences a deceleration in rent growth, Hampton Roads stands out with one of the highest increases in apartment rents over the past year, a recent study reveals.
Data from the CoStar Group shows that average rent prices in Hampton Roads surged by 2.7% between July 2024 and July 2025, notably outpacing the national average increase of 1.1%. For more insights, view the full report.
“Rent growth in Hampton Roads is being driven by a combination of strong demand, limited new supply and the region’s relative affordability,” explained Melina Duggal, CoStar’s senior director of market analytics for the Washington, D.C. and Baltimore areas, in a statement.
CoStar’s analysis spans areas including South Hampton Roads, the Peninsula, the Historic Triangle, and sections of coastal North Carolina.
Ranked fourth nationally, Hampton Roads’ rent increase is surpassed only by San Francisco at 5.3%, Chicago at 3.8%, and San Jose, California at 3.2%.
This rise occurs against a backdrop of diminishing national rent growth, with figures dropping from a 1.5% growth in January to 1.1% by July 2025.
Norfolk’s Housing Challenges
On Monday, a strategic meeting involving Norfolk City Council members, city staff, and housing authorities addressed the city’s housing challenges during a retreat organized by the Mayor’s Commission on Housing.
Christiana Whitcomb of HR & A Advisors highlighted that Norfolk, largely developed, has limited options for new construction. Findings from a 2024 study revealed a growing deficit of affordable rental units, now impacting households earning up to $75,000 annually, a marked shift from prior reports.
Despite Norfolk’s addition of hundreds of multifamily units in the past 25 years, as noted by Norfolk CivicLab Manager Carl Larsen, the supply remains inadequate to meet demand or reduce rents. Census data further indicates that many common jobs in Norfolk, such as cashiers and bus drivers, cannot afford the median rent of $1,599 without becoming financially strained. Nationally, the average apartment rent is $1,717, according to CoStar.
The Mayor has tasked the commission with investigating the housing crisis, proposing diverse housing solutions, and advising the Norfolk City Council.
Hampton Roads, beyond Norfolk, grapples with housing affordability. A 2024 study reports that about a third of Virginia Beach residents face housing cost burdens. Factors complicating housing development include zoning restrictions, prolonged permitting, and increased construction costs, influencing where builders choose to develop, as explored here. Additionally, high housing costs are a key reason young people are leaving Hampton Roads, according to recent surveys.
Contact Trevor Metcalfe at 757-222-5345 or trevor.metcalfe@pilotonline.com
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