Here is why property prices are going to climb in 2025 in Virginia Beach

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Expecting a dip in Virginia Beach property prices in 2025? Think again.

Despite economic shifts, the Virginia Beach market is poised for growth, with demand outpacing supply.

Let’s explore why property prices in this coastal city are set to rise in 2025.

We rely on solid, up-to-date data and statistics from multiple credible sources, all of which are detailed in this post.

Our comprehensive analysis of this data leads us to our own well-founded conclusions at the end. Enjoy the read!

This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.

1) Virginia Beach boasts an impressive livability score of 83, highlighting its excellent quality of life

Signal strength: strong

The livability score of 83 in Virginia Beach is a strong indicator of a high quality of life, which often attracts more residents and can drive up housing demand.

One reason for this excellent score is the proximity to beautiful beaches, offering residents easy access to recreational activities and stunning views. Additionally, the city boasts a robust local economy with diverse job opportunities, particularly in sectors like tourism and the military. These factors contribute to a desirable living environment, making it an attractive place for potential homebuyers.

Moreover, Virginia Beach is known for its strong educational institutions, which appeal to families looking for quality education for their children. As more people seek to move to areas with these characteristics, the demand for housing is likely to increase, potentially leading to higher prices. This trend is supported by the city's consistent population growth, which further indicates a rising demand for housing.

However, if the livability score were to drop significantly due to factors like increased crime or economic downturns, it could signal a potential decrease in housing demand and prices.

Source: AreaVibes

2) In Virginia Beach, there are about 0.41 homes for each person, which is relatively low

Signal strength: strong

The fact that there is around 0.41 home per inhabitant in Virginia Beach indicates a relatively low housing availability. This low ratio suggests that housing demand is likely to exceed supply, which often leads to an increase in housing prices. In Virginia Beach, a unique factor is the strong military presence due to nearby bases, which consistently brings in new residents.

These new residents often seek housing, further intensifying the demand for homes in the area. With limited housing options, the competition among buyers can drive prices up. Additionally, Virginia Beach is a popular tourist destination, attracting people who may want to invest in vacation homes.

This additional interest can also contribute to rising property values as more people look to purchase homes. If the ratio of homes per inhabitant were to increase significantly, say to 0.6 home per inhabitant, it might indicate a more balanced market, potentially stabilizing prices.

Source: USCensus

3) Redfin considers the Virginia Beach real estate market to be "very competitive."

Signal strength: strong

The fact that Redfin ranks the Virginia Beach real estate market as "very competitive" suggests that there is a high demand for homes in the area.

When a market is labeled as "very competitive," it often means that properties are selling quickly and frequently above the asking price. This is a strong indicator that housing prices are likely to rise in the near future, as demand continues to outpace supply.

In Virginia Beach, the most competitive properties are single-family homes located near the beach. People are particularly interested in these homes because they offer a desirable lifestyle with easy access to the ocean and recreational activities.

If the market were to become "less competitive," with properties taking longer to sell and prices stabilizing, it might suggest that housing prices could level off or even decrease.

Source: Redfin

4) Home values in Virginia Beach have risen by 3.0% since last year and could keep increasing

Signal strength: strong

The fact that home values in Virginia Beach have already changed by 3.0% since last year is a strong indicator that the housing market is on an upward trend. This increase suggests that demand is likely outpacing supply, which often leads to rising prices.

Currently, the median home price in Virginia Beach is around $400,880, and this figure is a key benchmark for potential investors. Additionally, the median sales price per square foot is around $225, which provides insight into the cost efficiency of properties in the area.

These statistics, combined with the recent price change, suggest that housing prices might continue to rise in 2025, making it a potentially lucrative market for investment. If the trend continues, investors could see significant returns on their investments in the coming years.

However, if the home value change were to drop below 1%, it might indicate a cooling market, challenging the assumption of rising prices.

Source: Redfin

5) Three major websites confidently predict that home prices in Virginia Beach will rise in 2025

Signal strength: strong

There are three major websites forecasting a positive growth for home prices in Virginia Beach in 2025, which is a promising signal for potential investors.

Among these forecasts, Realtor is the most optimistic with a prediction of a 6.60% increase in home prices, followed by Redfin at 4%, and Zillow with a more modest 0.50% growth. The significant gap between these forecasts suggests varying levels of confidence in the market's potential.

While these predictions are encouraging, it's important to remember that forecasts should be taken with caution as they are based on assumptions and models that may not account for unforeseen changes. Therefore, we will also rely on strong, reliable, and current data to make a well-informed investment decision.

If these forecasts were to predict a negative growth or decline in home prices, it would signal a potential downturn in the market.

Sources: ZillowForecasts, RedfinForecasts, RealtorForecasts

6) With a of just 6.0%, Virginia Beach's market is highly occupied and competitive

Signal strength: moderate

The vacancy rate in Virginia Beach is 6.0%, which is considered very low, indicating that most properties are occupied. This low vacancy rate suggests a high demand for housing in the area, which often leads to increased competition among buyers and renters. As demand continues to outpace supply, it is likely that housing prices will rise as more people compete for the limited available properties.

In such a competitive market, well-maintained single-family homes in desirable neighborhoods, such as the Great Neck area, are often rented quickly. These properties are attractive to families and professionals looking for a comfortable and convenient living environment. Investors should consider these types of properties as they tend to have consistent rental demand.

However, if the vacancy rate were to increase significantly, say to 10% or higher, it might indicate a shift towards a less competitive market. This could potentially lead to a stabilization or even a decrease in housing prices.

Sources: NeighborhoodScout, DataUSA, USCensus

7) In Virginia Beach, nearly 43% of homes sell for more than their listing price

Signal strength: moderate

In Virginia Beach, around 43% of sales close at a price higher than the listing price, which is a strong indicator of a competitive market.

This means that buyers are willing to pay more than the asking price, suggesting that demand is outpacing supply. When demand is high and supply is limited, prices tend to rise as buyers compete for available properties.

Such a trend often signals that housing prices are likely to increase in the future, as more buyers enter the market. If this pattern continues, investors might see potential gains in property values over time.

However, if the percentage of sales closing above the listing price drops significantly, say below 20%, it could indicate a cooling market where prices might stabilize or even decrease.

Source: Zillow

8) Over the past decade, home prices in Virginia Beach have consistently risen by an average of 5.4% each year

Signal strength: minimal

The fact that home prices in Virginia Beach have appreciated at an average rate of 5.4% over the last decade is a noteworthy signal for potential investors.

This consistent growth in home values suggests a history of demand and price increases, which can indicate favorable conditions for future appreciation. While it's important to remember that past performance doesn't guarantee future results, historical trends can still provide valuable insights.

Investors often look at long-term appreciation rates as a way to gauge the health and potential of a real estate market. In this case, the positive 10-year average is a strong indicator that the market has been robust and may continue to be so.

If the average appreciation rate were to drop significantly, it might suggest a shift in market dynamics that could alter future expectations.

Source: NeighborhoodScout

So, are prices going to climb in Virginia Beach in 2025? Absolutely!