The apartment cow isn’t dry, but things aren’t flowing as freely in Richmond as they are elsewhere.
Douglass Poutasse, head of strategy and research with real estate investment firm Bentall Kennedy, told attendees at the VCU Real Estate Trends Conference on Tuesday that the new apartment market nationwide isn’t half as large as it was at its 2007 peak.
Poutasse was one of seven speakers who addressed topics such as the housing market and the effects of sports and entertainment on a local economy.
“Nationwide, there are less than 200,000 multifamily [projects] with an estimated 1 million more renters,” he said. “The market is far from being saturated.”
But Poutasse said that Richmond’s multifamily market isn’t as strong as the national market.
“Richmond has about 5 percent vacancy with about a 2 percent growth in demand,” he said. “There is not an office market in the country that could hope to have those kinds of numbers, but in national terms, Richmond is a mediocre market [for apartments].”
There are more than a dozen apartment projects in the works or under construction in Richmond.
- 178 apartments at the Interbake Cookie Factory
- 174 apartments at the old Reynolds North plant
- 57 apartments at 200 N. 20th St.
- 44 apartments at 115 E. Broad St.
- 154 apartments at the First National Bank building at 825 E. Main St.
Poutasse told a packed room of about 1,000 people that he wasn’t optimistic about the economy at large.