In terms of real estate investing in the various great Southern cities, people don't think as often about investing in Richmond, and that's a huge missed opportunity. Prices and properties in Richmond are great, and more investors out there should definitely take a look at what this city has to offer. Marco Santarelli shines a spotlight on why you should be investing in Richmond, Virginia. It's a very diverse market and definitely deserves the spotlight after having been in the shadows of other Southern cities for so long. See what Richmond might be able to offer you!
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In this episode, our focus is on the Richmond Virginia market. Richmond is the capital city in the State of Virginia. The Richmond Metropolitan Statistical Area, the MSA, is the 44th largest in the United States. It includes independent cities such as Richmond, Colonial Heights, Hopewell, Petersburg, as well as a number of surrounding counties. The population of the Richmond Metropolitan Statistical Area is very close to 1.3 million people and a growing international community adds to the areas of cultural diversity and cosmopolitan character. It's a metropolitan area that is strong, vibrant and growing. Richmond's economy is primarily driven by law, finance and government with federal state and local government agencies located there as well as multiple legal and banking firms in the Downtown area.

The city is home to both a US Court of Appeals, 1 of 13 such courts and a Federal Reserve bank, 1 of 12 such banks. Also, Dominion Energy and WestRock are there. Fortune 500 companies are there and many others in the metropolitan area adding to the economic diversity. As far as regional trends, population growth has been very positive. It's grown by about 2% and job growth has been over 4% putting it in the top 80% nationally. Income trends have been strong. Incomes have increased by over 5.6%. The unemployment trend is also very strong, dropping about 1% and putting it in the top 80%. That market continues to add housing units which are needed and have very low vacancy trends so there is strong demand for rentals.

The market has seen about a 4.5% appreciation growth. It is a fairly strong market. I would call it a growth market when you're at that 5% range. What's interesting is it has seen over 14% appreciation putting it at the top of the country. This isn't top 10% of appreciating markets or at least has been for the last ten years and very much so in the last five. I don't expect that to continue in any market around the country, primarily because of the Coronavirus thing and the effect on the economy that it has had.

When we bounce back, we tend to bounce back strong. I am very excited and bullish about this market. Last but not least, in terms of national rankings, the median house cost in this market is 68%. That means compared to all markets across the United States, this is in the 68% mark. Cashflow potential for this market is very strong. It's at 79% in terms of a national ranking so it's in the top 20%. Rent growth has been very strong, certainly above the midway point at 57%. It is also a strong rental growth market.

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Market Spotlight: Richmond, Virginia
With me now is Frank. He is one of our fantastic new providers in the Richmond, Virginia Metropolitan Area. We are excited to have him on. I've known Frank for many years.