Norfolk-Virginia Beach Multifamily Market Report

Cities of Norfolk and Virginia Beach outperform. Net absorption held up despite a net job loss in 2025, partly due to federal government layoffs that disproportionately impacted the metro. In the last 12 months ended in March, performance was strongest in Norfolk and Virginia Beach; both cities recorded vacancy declines of over 100 basis points and posted rates below 3 percent. Class C properties led compression, with vacancy falling below 2 percent in these submarkets. Class A performance was also firm, particularly in Norfolk, where vacancy declined from the mid-5 percent range to about 4 percent. This broad-based strength in renter demand, combined with hiring in key sectors and a contracting pipeline, points to further potential declines in vacancy.