Steady Prices and Growing Demand Shape Virginia’s Housing Outlook
Virginia’s housing market remains resilient heading into the final quarter of 2025. While rents have flattened after pandemic-era spikes, home prices continue a moderate upward trend driven by strong employment and in-migration to Northern Virginia, Richmond, and coastal metros. With balanced inventory and steady demand, the state is entering a phase of measured growth and greater market stability.
Residential Real Estate Trends – October 2025 Snapshot
| Metric | Virginia (Oct 2025) |
| Median Home Price | $456,000 (+3.2% YoY) |
| Home Sales (annualized) | 179,000 units (+2.1% YoY) |
| Median Days on Market | 25 days (up from 22 days in 2024) |
| Housing Supply | 3.3 months (vs 2.8 months Oct 2024) |
| Average Rent | $2,020 (+$20 YoY, +1%) |
| Available Rentals | ≈ 13,440 statewide (Zillow) |
Home Prices Rise Moderately as Inventory Improves
Home values across Virginia rose 3.2% year-over-year, reflecting solid demand from first-time buyers and relocating professionals from the D.C. metro area. Inventory levels have increased slightly to 3.3 months of supply, offering buyers more choice while keeping conditions balanced.
Homes stay on the market for about 25 days on average, and price reductions have become more common as sellers adjust to a less heated environment than in 2021-2022. Northern Virginia continues to see the highest prices, while areas such as Chesterfield, Fredericksburg, and Virginia Beach remain steady mid-tier markets.
Rental Market – Stable Rents and Healthy Tenant Demand
According to Zillow Rentals (Nov 2025), Virginia’s average rent is $2,020, up slightly by $20 YoY (+1%), but down $31 month-over-month, indicating seasonal cooling as inventory expands.
- Month-over-month change: –$31
- Year-over-year change: +$20 (+1%)
- Available rentals: ~13,440 statewide
Rents remain steady across most markets, with strong demand from military families, students, and commuters to D.C. and Richmond.
Regional Highlights:
- Northern Virginia (Arlington, Fairfax, Alexandria): Avg. rent ≈ $2,400 (+1.5%) – steady demand from federal and tech sectors.
- Richmond Metro: Avg. rent ≈ $1,950 (+0.5%) – balanced market, strong university and healthcare employment.
- Virginia Beach / Norfolk: Avg. rent ≈ $2,050 (–0.5%) – stable tourism and military presence support demand.
- Charlottesville: Avg. rent ≈ $2,100 (+2.0%) – steady growth driven by education and biotech.
💡 Landlord Tip: With rents leveling off, retaining long-term tenants through lease renewal discounts and property upgrades can maximize ROI as 2026 approaches.
Investor Activity – Strong Interest in Northern and Suburban Markets
Investor demand in Virginia remains robust, especially in suburban areas offering high employment growth and strong rental fundamentals.
- Investor share: ≈ 16% of transactions (Q3 2025)
- Top markets: Fairfax County, Prince William, Richmond Metro, and Virginia Beach
- Typical investment: Single-family homes under $500K or small multifamily properties
- Rental yields: 4.8–6.2%, depending on location and tenant class
Investors are also increasingly targeting build-to-rent and short-term rental properties in coastal and university towns, balancing steady yields with long-term appreciation potential.
City-Specific Market Highlights – Fall 2025
| City | Median Price | Avg. Rent | Key Insight |
| Arlington | $670K (+3.4%) | $2,600 (+1.2%) | Federal and tech employment keep demand steady. |
| Fairfax | $615K (+3.1%) | $2,400 (+1.0%) | High-income suburbs see balanced market. |
| Richmond | $425K (+3.2%) | $1,950 (+0.5%) | Downtown revitalization supports growth. |
| Virginia Beach | $455K (+3.0%) | $2,050 (–0.5%) | Tourism and Navy presence sustain stability. |
| Charlottesville | $485K (+3.3%) | $2,100 (+2.0%) | Education and research fuel housing demand. |
| Alexandria | $690K (+3.5%) | $2,650 (+1.5%) | Luxury and urban rental markets remain tight. |
Mortgage Rates and Affordability – Fall 2025 Overview
Mortgage rates hover around 6.9%, impacting purchasing power but keeping competition moderate. Virginia’s income levels and employment base continue to support steady affordability.
- Average monthly payment on a $450K loan ≈ $2,800
- First-time buyer programs offer down-payment assistance and reduced interest rates
- New construction permits up 5.0% YoY statewide, notably in Richmond and Hampton Roads regions
Economic and Policy Drivers
- Defense and Tech Growth: Federal contracts and tech expansion support housing demand in Northern Virginia.
- Infrastructure Investments: Transportation projects and Green Energy initiatives boost employment and housing starts.
- Short-Term Rental Regulations: Local governments refining rules in tourist areas like Virginia Beach and Charlottesville.
2025 Tips for Buyers, Landlords, and Investors
For buyers: Rising inventory offers more negotiation power and fewer bidding wars.
For landlords: Renew leases strategically and emphasize energy-efficient upgrades to maintain appeal.
For investors: Target growth corridors around Northern Virginia and Richmond for long-term gains.
Conclusion – Virginia Housing Remains Stable Heading into 2026
Virginia’s Fall 2025 housing market is defined by steady growth, balanced supply, and strong employment fundamentals. Slightly lower rents and modest home price gains reflect a healthy, sustainable market. With its diverse economy and steady migration trends, the state is well-positioned for continued real-estate strength in 2026.
Contact Intempus Property Management to learn how our team can help you maximize returns and simplify property ownership across Virginia.
Explore Real Estate Trends Across 9 States
Our full Fall 2025 Real Estate Market Update – Regional Trends Newsletter includes in-depth analysis of market conditions in:
California, Florida, Ohio, Tennessee, Indiana, Nevada, South Carolina, Georgia, and Virginia.
📥 Download the PDF Newsletter Now to compare regional performance, track rental trends, and access expert insights.
Sources: Local REALTOR® associations and industry reports, Zillow Rental Data, Redfin Research, and state-specific market analyses
