A Virginia real estate agent’s work is heavily dependent upon the economic factors of supply and demand. If a lot of people are moving to a certain city or area, the supply of real estate could wane while demand grows. These are the conditions that create a seller’s market and push property prices higher. If the population is going down, the opposite could be true. Read more about how buyers cope with housing affordability.
Right now in Virginia, the Weldon Cooper Center for Public Service has pinpointed which parts of the state are growing the fastest between 2020 and 2023. Cities with populations over 25,000 people that are growing the fastest include:
Suffolk - 6.7%
Winchester - 2.2%
Harrisonburg - 2.2%
Petersburg - 2.1%
Chesapeake - 1.2%
Counties have been growing at an even faster pace as more people are migrating away from large cities for more affordable suburbs a little further out or even small towns that provide a totally different lifestyle. The counties with the most substantial growth are:
New Kent County - 11.9%
Goochland County - 7.7%
Louisa County - 7.5%
Caroline County - 7.0%
Chesterfield County - 6.4%
Real estate agents in cities and counties where the population is growing quickly will likely have more potential clients. These areas are positioned to have a wealth of buyers and rising property prices, which often leads to higher commissions.
But a buyer’s market also has its advantages. Developers or house flippers may want to snatch up cheap real estate while they can in areas just outside the spots with high growth. However, hopeful house flippers should learn more about the process before buying.
Trends Fueling Population Growth in Virginia
Two things are significantly influencing where people live in Virginia: housing affordability and remote work.
Since the Covid-19 epidemic remote work has dramatically increased. It has had a direct impact on where people live, with many people choosing to leave the big cities behind for smaller cities in suburban areas and regions even further out.
This is a significant factor in the growth around Northern Virginia. Since 2020 there’s been a notable exodus out of Washington D.C. as more people there moved to either hybrid schedules or working remotely 100% of the time. It afforded them the opportunity to move somewhere further out where they can get bigger homes that are more affordable.
3 Fastest Growing Cities in Virginia
As a real estate agent you want to have a firm understanding of what’s motivating people to move to your market area. So, let’s take a closer look at the three fastest-growing cities in Virginia to see what’s fueling the growth.
Suffolk
Suffolk went from a population of 94,342 in 2020 to 100,690 just three years later. Given the boom in population it’s not surprising to find that Suffolk has had 9.55% business growth. More importantly for real estate agents is that the housing market has grown by 9.28%. It’s the kind of conditions that attract entrepreneurs, so residential and commercial real estate could see an uptick in Suffolk.
Winchester
Winchester has been one of the fastest growing cities for years. Between 2010 and 2020 the city grew by an impressive 14%, and just three years later it has grown another 2.2%. The growth in Winchester is due to its proximity to Washington D.C. Winchester has long been a hot spot for recent retirees, but now remote workers are deciding to call the city home as well.
Harrisonburg
In Harrisonburg the metro at large is growing again after a few years of stagnant population growth. It’s the largest city in Virginia’s Shenandoah Valley that has attracted retirees for some time but is now drawing in a wider demographic. Known for its historic districts and stable economy, Harrisonburg combines charm with convenience.
It’s important for real estate professionals to know the specific cities experiencing rapid growth or decline. Knowing the market is part of an agent’s responsibility to their clients, and it can help determine which market they work in. Beyond that it will also give real estate agents perspective on who buyers are and what they are looking for so they can market and network more effectively.
Updated 11/11/24