Why Invest in Virginia?
With a long and storied history, beautiful scenery, excellent universities and proximity to DC, Virginia is a
great option to move to, retire or invest in. You can live near the beach or close to the mountains, and
enjoy the picturesque changes in scenery during each season.
Virginia fared surprisingly well during the 2007 housing crisis, and right now is home to a thriving
economy with plenty of room to grow. The standards of living are also pretty high, with a per capita and
median household income well above the national average. The cost of living is on the expensive side,
however, and the median home value is also above the national level.
Given all of these factors, investors might wonder if it makes sense to invest in Virginia’s real estate.
We’re happy to say that it does. Here are a few reasons why.
Investment Considerations for Virginia Real Estate
- Virginia’s Strong Tech Industry- According to an article published by Reuters back in 2008, one out of eleven workers in Virginia work in the tech, which is the highest concentration in the country. Virginia has also been named the best state for businesses by Forbes, CNBC and Fundivo. A well-educated workforce with above average wages means more qualified buyers, and a consistent increase in both demand and home prices.
- Taxes Are Fair- Virginia has a progressive income system. Folks in the lowest tax brackets only pay a 2% tax rate, which increases as income does. Tax rates for the wealthiest Virginians are 27th highest in the nation. Property taxes are below the national average, and retirees will find some of the most friendly retirement taxes in the country. Unlike many other states, Virginia does not tax Social Security benefits.
- Home Prices Are Above the National Average, and Expected to Increase- While most Virginia homeowners are happy about the appreciation they’ve experienced over the past few years, first time buyers face prices that are well above the national average. The median home value in Virginia is $250,400, whereas the national median home value is at $215,600. Zillow expects homes to appreciate by 3% by 2019.
- Rent Prices Are Also Above the National Average- Rent for a 3-bedroom apartment in Virginia is around $1,644, which is $113 above the national average. This is good news for real estate investors, since it means a faster return on investment.
What are the Best Markets to Invest in Virginia
Most of the action happens in the cities of Virginia Beach, Norfolk, Chesapeake, Arlington and Richmond, since they are the most populous. Richmond has seen some of the highest population growth and appreciation in home values in the country. Some of the most up and coming neighborhoods in Richmond include Lakeside, Scott’s Addition and Church Hill, which is going through an extensive renovation and restoration phase.
Getting Started in Real Estate Investing? HomeUnion® Can Help
HomeUnion® is the leader in residential real estate investment. With the use of big data and machine learning, we analyze information on millions of single family homes in Virginia; and across the United States and calculate home values RENTestimate for every property in Virginia. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.