The Last Affordable Neighborhoods

Rents continue to remain high in Hampton Roads as affordable 1 bedroom apartments disappear and Newport News shows signs of gentrification. In May, the average rent across all units in Hampton Roads was: $1,780 / month.
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The averages for each unit type:

Studio: $1,424
1-Bedroom: $1,522
2-Bedroom: $1,734
3+ Bedroom: $2,139

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5 Key Takeaways

1) Chesapeake and Virginia Beach were the most expensive cities to rent in last month, with Norfolk and Suffolk catching up.

2. The Last Affordable Neighborhoods

The availability of affordable 1 bedroom apartments is dwindling. In May, there were just 34 neighborhoods where 1 bedroom apartments averaged less than $1,200 / month. That’s down from 46 neighborhoods in February.

Importantly, these 34 neighborhoods are concentrated in some areas and not others. Norfolk had 14 neighborhoods while Chesapeake and Suffolk had zero neighborhoods where the average 1 bedroom rent was below $1,200 / month.

3. Median Income

In Norfolk’s 14 neighborhoods where 1 bedroom apartments remain affordable, on average the median income is $41,000 a year. That could point to resilient pockets of affordable housing in the city, especially in working-class neighborhoods. But it could also be a warning sign pointing to growing areas of concentrated poverty.

4. Gentrification in Newport News?

Downtown Newport News is one of the poorest neighborhoods in Hampton Roads. In 2022, the average median household worth was just $9,000 and the median yearly household income was $22,000. But in May, the average 1 bedroom rent was over $1,700. What gives? A few new ‘luxury’ apartment buildings are to blame.

One of them in particular is driving up rents: the River Park Tower Apartment Homes. Where rents are listed far above what the average renter in the neighborhood can afford. River Park is actually majority owned by the Olayan Group. A Saudi Arabian global financial firm whose HQ is in Liechtenstein!

This is another example of how global finance reshapes housing in Hampton Roads, driving, as Saskia Sassen put it, "gentrification on steroids."

5. Most/ Least Expensive

Buckroe Beach, just north of Fort Monroe made its way into the top three most expensive neighborhoods, with 1 bedroom rents averaging $2,583 / month. Though, North Virginia Beach and parts of Chesapeake remain the most expensive neighborhoods in the region. Hampton’s Back River was the most affordable neighborhood with rents averaging below $1,000 a month.

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