Virginia Home Selling

The Virginia housing market remains highly competitive, driven by strong buyer demand and limited inventory. Home prices continue to rise steadily, leaving buyers to face a challenging landscape across the Old Dominion state and sustaining favorable conditions for home sellers.

The median sale price for most homes in Virginia was roughly $455,000 in September 2025, a 1.4% increase from the previous year and slightly higher than the national median of about $435,000. While the typical home in Virginia is significantly less expensive than in Washington, D.C. ($672,000), median home prices in the state are generally higher than Southeastern neighbors like West Virginia ($239,800), Kentucky ($270,500), and North Carolina ($379,500)

The average number of homes sold each month in the Commonwealth of Virginia is about 10,700 in 2025, an increase of 6.7% from the previous year. This is slightly lower than neighboring North Carolina, but well ahead of Kentucky (4,400), Maryland (6,300), and Tennessee (around 7,200). Most homes spend an average of 39 days on the market in Virginia, with buyers moving faster than in competitive border states like Maryland (42 days) and Kentucky (48 days).

In 2024, Virginia issued 3.87 new private housing unit permits per 1,000 residents, slightly below the national rate of 4.35 per 1,000. Though permitting activity in Virginia lagged behind more development-friendly states like North Carolina and Tennessee, it exceeded Maryland and West Virginia, both of which authorized fewer than 3 new housing units per 1,000 residents during the same period.

Although property tax rates are highly specific to each municipality, Virginia's effective rate of 0.74% is lower than the national median of about 0.83%. Relative to the region, this figure puts Virginia squarely in the middle of the pack, with West Virginia's 0.54% on the low side and Maryland's 1% representing the upper limit.

Despite a 22% year-over-year increase in foreclosure activity, Virginia's foreclosure rate remains relatively moderate at 1 in every 2,060 housing units, slightly below the national median of around 1 in 1,850. This rate signals a relatively stable market with some investor opportunity to buy distressed homes, though investors looking to buy bank-owned properties are better served by states with higher foreclosure rates, such as Maryland and North Carolina.

Virginia presents several options for investors looking to grow their investment portfolios through residential property development. The state generally has a thriving housing market that offers long-term appreciation potential and high rental demand. These factors, along with limited supply, continue to make Virginia real estate an appealing investment. However, some locations stand out for their more affordable entry points, outsized appreciation potential, and strong rental markets.

Areas in Virginia where local housing markets hold the potential for a higher return on investment (ROI) include the following:

• Norfolk: The city's expanding economy, which is driven by education, healthcare, and shipping, and the steady rental demand, encourage real estate investment.

• Lynchburg: Its steady population growth, strong rental market (due to healthcare jobs and Liberty University staff and students), and increasing demand for flipping make the city ideal for residential property development and investment.

• Richmond: With the city's moderate zoning laws and affordable entry prices, investors may be more likely to generate a high ROI on real estate investments in Virginia's capital city.

• Virginia Beach: This coastal city sees consistently high demand for waterfront properties and family housing. In addition, Virginia Beach welcomes more than 14 million tourists annually, creating additional ROI potential through short-term rental opportunities.

• Harrisonburg: Growing demand for James Madison University student housing and starter homes, as well as lower acquisition costs and property taxes, often attracts residential developers to Harrisonburg.

• Charlottesville: In addition to the potential of price appreciation, this city has a strong job market, particularly for education and healthcare professionals, helping underpin the local rental market.

• Leesburg: Its strategic location about 33 miles northwest of Washington, D.C., typically creates strong rental demand from government contractors and employees, offering real estate investors an opportunity to make a profit on both shorter- and longer-term rentals.

• Buena Vista: The city offers investors lower acquisition costs while still promising appreciable rental income due to consistent demand in the rental market.

• Arlington: The city's proximity to the nation's capital and several universities gives it a strong tenant base, with a steady influx of government employees, working professionals, students, and military personnel.

• Roanoke: With median sales prices under $300,000 and a fast-growing local job market, Roanoke offers investors the opportunity to generate solid rental yields with a lower upfront investment.

Typically, well-maintained homes with modern and updated features in prime locations tend to sell fastest in Virginia. Listed homes spend about 39 days on the market, with another 35 days needed to close the sale with the buyer. As with many other areas, homes tend to sell fastest in the spring and summer, with homes selling most quickly in April.

The following factors may impact how fast a home will sell in the Commonwealth of Virginia:

Zoning laws help regulate the legal uses for a property. They identify an area as either a residential, industrial, commercial, or mixed-use zone. Real estate investors in Virginia must understand zoning laws, permits, and other regulatory requirements, as well as how to address each of them to protect property value. Otherwise, they risk violating zoning ordinances and other regulations.

According to the Virginia Residential Property Disclosure Act, homebuyers in the state should exercise their due diligence, which may include requesting a zoning compliance letter from home sellers. This letter can verify that a property does not violate any local zoning ordinance, and is free from any zoning-related legal issues.

Real estate developers and home sellers in Virginia need to understand the following local regulatory environments and how they can impact real estate development:.

• Areas with strict zoning laws: In places like Fairfax County, Vienna, Alexandria, and Arlington County, zoning regulations are strict, with tight controls on the type of structure, lot size, density, land use, and modifications. In some of these areas, there are limits on accessory dwelling units (ADUs), while others enforce strict setback requirements. Violating zoning regulations and selling homes with unpermitted structures in areas with strict zoning laws may delay real estate transactions or result in fines or the reversal of modifications.

• Areas with less bureaucratic zoning laws: In Virginia, Suffolk, the City of Roanoke, Fredericksburg, and Chesterfield County are known for less bureaucratic zoning laws. These areas are generally friendly to developers and home sellers, and offer clearer approval pathways. The less bureaucratic zoning laws encourage home development by supporting ADUs, as well as mixed-use and cluster development. Since there are fewer concerns with minor nonconformities and zoning laws allow some structural changes, it's easier for developers and home sellers to renovate and/or sell properties.

• Areas requiring a special permit via a public hearing and approval from the zoning board: In places like Virginia Beach, Loudoun County, Richmond, and Henrico County, uses outside standard zoning categories generally require approval of the local planning commission or zoning board. Often, a public hearing is needed before approval for any deviations from the standard use. Home sellers who fail to obtain the requisite approvals may face buyer pushback or delays when trying to sell nonconforming properties.

• Areas requiring a Certificate of Occupancy (CO) before legal occupation: In Virginia, municipalities such as Richmond, Norfolk, Chesapeake, and Virginia Beach require a CO before occupancy for all substantially renovated or newly-built homes. In other cases, every change of use or addition requires a CO. Where a CO is required, any major renovations done without the necessary inspections or permits may delay the sale of the property until violations are rectified or the CO is obtained.

• Areas requiring the approval of a Historic Commission: In places like Winchester, Alexandria, and Charlottesville, approval from the local Boards of Architectural Review is often required before initiating any changes to street-visible exteriors of buildings. In some of these municipalities, an approval must be secured to use certain materials and paint colors or to make new additions. Any additions must adhere to historic character rules.

Real estate regulations generally include building codes, zoning laws, and mandatory disclosures of property conditions. For investors, developers, and sellers, complying with local real estate regulations can help protect against potential legal issues and help maximize property value and ROI.

While navigating local real estate regulations in certain Virginia municipalities is relatively easy, it may prove difficult in other areas of the state. Understanding the regulatory climate in each part of the Commonwealth will help home sellers and developers navigate local real estate regulations.

Development-Friendly Areas

In Virginia, areas with a development-friendly regulatory climate typically have flexible zoning and clear permitting processes. Developers in such areas, which include the following, usually enjoy local government support for compliant projects:

• Suffolk: The local government offers streamlined permitting and generally promotes pro-growth initiatives. The zoning codes largely favor residential subdivisions.
• Fredericksburg: The city's real-estate regulations encourage redevelopment and generally support medium-density residential and townhome projects.
• Roanoke: This city gives room for creative land use and redevelopment, and promotes infill development and adaptive reuse.

Moderately Regulated Areas

While zoning is often strictly enforced in these areas, regulations aren't overly complex, and approvals are generally reasonable. Real-estate regulations in the following Virginia municipalities typically strike a healthy balance between control and growth:

• Harrisonburg: Although the local real-estate regulations encourage growth, especially to support the student and faculty population of James Madison University, developers may face certain zoning constraints for high-density or new multifamily housing.
• Richmond: Even though the city's local regulatory climate supports density, zoning is structured, and special permits and public hearings may be required in certain instances.
• Lynchburg: Although real-estate regulations in Lynchburg are development friendly, developers may need to obtain board approvals for some renovations.
• Newport News: The city allows for some flexibility in new housing plans, and in 2024, voted to allow ADUs in all districts zoned single-family.

Highly Restrictive or Bureaucratic Areas

The following Virginia municipalities are generally regarded as having dense bureaucratic procedures, strict or rigid zoning, and extended approval timelines:

• Vienna: In addition to slow permit turnaround times, zoning controls in this town are tight and highly protective of neighborhood character.
• Middleburg: The local real estate regulations tend to preserve the town's history, and property development is generally discouraged unless it aligns with strict aesthetic land-use requirements.
• Alexandria: The city's real estate regulations are strict on exterior appearance and materials. Approval of the local Board of Architectural Review is required for any alteration to buildings.

Regulatory Climate Factors

Real estate development, flipping, and home renovation are largely influenced by certain regulatory climate factors in Virginia. For instance, zoning restrictions and permitting requirements may determine how easy or difficult it is to flip or renovate in a particular locality within the state. Regulatory climate typically varies by municipality, and while some areas are highly regulated, others may have flexible regulations that make it easy for developers and investors to build, renovate, and/or flip.

The table below shows how different regulatory climate factors play out in varying Virginia municipalities:

*NIMBYism - Not in My Backyard

Flipping in the housing market generally involves buying a home at a relatively low price, renovating it to add some value, and then putting it up for sale on the market at a considerably higher price. When successful, it offers real estate investors the opportunity to make quick, high returns on their investments. However, flipping requires local market knowledge, planning, and strategic implementation to be successful.

Considering the prevailing housing market trends in Virginia, flippers can use the following strategies to help maximize profit on their investments in the Commonwealth:

Home sellers must learn to set prices that attract potential buyers while not losing focus on maximizing property value. Generally, adopting a smart pricing strategy is crucial because overpricing a property can lead to more days on the market and fewer showings.

Depending on the location in Virginia, home sellers may consider using one or more of the following pricing strategies to attract buyers quickly and ensure the best return on investment:

In Virginia, home sellers may adopt strategies (listed in the table below) that best suit the prevailing market conditions in their locality:

Several factors play crucial roles in driving the prevalent trends in Virginia's local housing markets. Generally, these trends suggest different landscapes across the Commonwealth. For instance, in Northern Virginia, a densely populated region where listed homes receive multiple offers, the market trends typically indicate a competitive environment. The factors below are some of the key drivers of Virginia's housing market, with current trends creating both challenges and opportunities for sellers and buyers alike.

Economic Factors

Virginia's property market is largely influenced by economic factors like job growth in healthcare, technology, government, and defense, as well as the rising cost of living and regional wage disparities in urban areas. Places with growing employment opportunities in healthcare, tech, and government sectors, such as Alexandria, Richmond, Arlington, Norfolk, and Lynchburg, continue to experience increased demand for rental housing.

Demographic and Social Factors

Cultural preferences, age distribution, population growth, and immigration trends generally determine which housing types are most in demand in a given area. For instance, in Charlottesville, a university town in Virginia, the student and staff population is driving high demand for condos, rentals, and smaller homes, particularly in locations near campus. The same applies in Harrisonburg, where the young professional and student population currently drives the entry-level housing market and rental demand. In Prince William and Loudoun Counties, demand for single-family homes is being driven by large immigrant communities and rapid population growth.

Regulatory and Legal Framework

How easily and quickly new housing can be developed or redeveloped in a locality is partly determined by regulations on permitting, land use, and zoning. Places with stricter local real estate regulations generally see elevated home prices and lower inventory. In Stafford and Chesapeake, the developer-friendly and flexible zoning generally encourages subdivisions and drives residential growth. On the other hand, dense zoning and historic preservation in Arlington and Alexandria are some of the key reasons new builds are limited, while renovating existing buildings is complex and potentially costly.

Taxation and Fiscal Policy

Generally, government incentives and local property taxes can impact home affordability and investors' ROI. In Richmond, developers and investors interested in adaptive reuse are attracted by tax abatement incentives for historic renovations. In contrast, some homebuyers and flippers are discouraged from purchasing or investing in Danville and Petersburg's local housing markets as a result of high property taxes relative to home values.

Housing Policy and Government Programs

Home affordability and supply, as well as accessibility to housing in high-demand markets, may sometimes be influenced by local housing policies like government subsidies and inclusionary zoning. For instance, in Danville, land banking and housing rehabilitation funds are available to investors to help stabilize declining neighborhoods. Similarly, zoning and financing incentives in Arlington generally encourage developers to create affordable housing units in the municipality.

Infrastructure and Development Trends

Municipalities with infrastructure developments like broadband, transit, and flood control systems are usually appealing to real estate investors and homebuyers. This is evident in the rising housing demand from remote workers in Galax and Abingdon, which are beneficiaries of rural broadband deployment. Similarly, the stormwater project in Alexandria and the coastal infrastructure project in Norfolk (both flood-prone areas), are driving up property values.

Market Sentiment and Investor Behavior

Future appreciation potential, returns on investment, and perceptions of risk are some market sentiments influencing investor behavior, which can shape the trends in the local housing market. For example, due to demand for renovated housing units and appreciation potential, Richmond has grown into a thriving market for multifamily investors and flippers. In addition, low home acquisition costs and the potential for high rental income are attracting real estate investors to smaller cities with a semi-rural feel, like Waynesboro and Winchester.

Virginia's housing market continues to witness rising buyer demand, largely driven by population growth, economic stability, and infrastructure development, particularly in urban areas like Virginia Beach, Richmond, and Arlington. Homes with 3 to 4 bedrooms that feature open layouts, modern upgrades, and at least 2 bathrooms tend to sell faster, particularly if they're in suburban, family-friendly areas. Investors looking to break into the state's real estate industry may consider targeting places such as Roanoke, Norfolk, Harrisonburg, Virginia Beach, and Richmond.

Zoning regulations and restrictions, which typically vary by municipality across the Commonwealth of Virginia, can determine how easy or hard it is for home sellers and developers to operate. For instance, zoning is relatively development-friendly in Stafford and Chesapeake, which encourages new builds and other investments, while in Charlottesville and Alexandria, strict zoning and historical preservation can complicate renovations and other development projects.