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Real Estate Investment Market Report for Pennsylvania, Virginia, and Washington D.C.: March 2021

private money lenders

How the Commercial Real Estate Lending Environment Might Differ in a Post-COVID-19 World

It goes without saying that the global toll of the COVID-19 pandemic has been substantial. Like many other industries, the real estate lending sector has also been impacted. However, the market is still functioning, and investors still have access to financing. But how that funding is accessed, as well as the terms and structures of loan packages, have changed slightly to reflect the new environment. In this article, we’ll explain what investors should be aware of and how construction lending can evolve as the nation recovers from the pandemic.

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Market Activity

Richmond, VA
Market Overview

Multifamily development has continued at a rapid pace in Richmond. In 2020, developers completed the construction of more than 3,500 units. This marked a new record for the city and the third consecutive year in which 2,000 or more units were built. This year’s deliveries are expected to exceed the five-year average of 2,136 units. With an influx of new residents moving away from large metro areas, the rental market remains steady.

484
Homes Sold
$276,100
Avg. Home Price
$1,400
Median Rent
Vacancy Rates Graph
U.S Census Bureau
5.4%
Rental Vacancy Rate
0.7%
Homeowner Vacancy Rate
5.3%
State Unemployment Rate
Metro Area Unemployment
Blacksburg-Radford, VA
4.9%
Charlottesville, VA
5.1%
Harrisonburg, VA
4.8%
Kingsport-Bristol-Bristol, TN-VA
5.6%
Lynchburg, VA
5.9%
Richmond, VA
6.1%
Roanoke, VA
5.5%
Staunton-Waynesboro, VA
4.8%
Virginia Beach-Norfolk, VA-NC
6.5%
Washington-Arlington, DC-VA-MD
6.0%
Winchester, VA-WV
4.4%

Market Activity

Philadelphia, PA
Market Overview

Philadelphia was one of the hottest markets in 2020 and it remains so. Three and four-bedroom row houses and attached homes are among the most common housing units in the area. Since 2013, the average home price has appreciated by nearly 60 percent. Zillow predicts that Philadelphia, Bucks, Chester, and Delaware County homes that have all increased in value by more than 8 percent and will continue to rise in 2021.

1,294
Homes Sold
$239,512
Avg. Home Price
$1,750
Median Rent
Vacancy Rates Graph
U.S Census Bureau
6.7%
Rental Vacancy Rate
1.3%
Homeowner Vacancy Rate
7.3%
State Unemployment Rate
Metro Area Unemployment
Allentown-Easton, PA-NJ
7.8%
Altoona, PA
8.1%
Bloomsburg-Berwick, PA
7.6%
Chambersburg-Waynesboro, PA
6.5%
East Stroudsburg, PA
9.3%
Erie, PA
9.8%
Gettysburg, PA
5.7%
Harrisburg-Carlisle, PA
6.8%
Johnstown, PA
9.1%
Lancaster, PA
6.3%
Lebanon, PA
7.1%
New York-Jersey City, NY-NJ
9.6%
Philadelphia-Camden, PA-NJ-DE
7.7%
Pittsburgh, PA
8.4%
Reading, PA
8.1%
Scranton-Wilkes-Barre-Hazleton, PA
9.7%
State College, PA
6.1%
Williamsport, PA
8.7%
York-Hanover, PA
6.7%
Youngstown-Warren, OH-PA
7.9%

Market Activity

Washington D.C.
Market Overview

Vacancy softened across all apartment classes inside Washington D.C. by at least 350 basis points. Availability increased the most in the metro’s higher-cost residential areas because renters, by choice or necessity, looked for more affordable or less dense living spaces. As the vaccine rollout is expected to bring more employees back to the office, the upcoming supply growth could pose a challenge in some neighborhoods. Between the Navy Yard/Capitol South and Northeast D.C. submarkets, 6,000 doors will open this year.

765
Homes Sold
$635,000
Avg. Home Price
$2,917
Median Rent
Vacancy Rates Graph
U.S Census Bureau
9.9%
Rental Vacancy Rate
1.8%
Homeowner Vacancy Rate
Homes sold and average home price data is from Redfin.com. Median Rent data is from rentcafe.com.  Data shown in this email is an average over the last month unless otherwise marked

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