Are you looking to invest in Hampton Roads, Virginia, real estate?
Investing in real estate is a great opportunity to earn a stable passive income while also benefiting from appreciation rates. However, not every city has a strong real estate market.
There are areas where investments are not as profitable. So, you need to conduct thorough research and due diligence beforehand.
If you’re trying to grow your real estate portfolio, you should focus on areas with a strong economy, a booming job market, a high quality of life, plenty of attractions, and a healthy rental market.
Luckily, the area of Hampton Roads checks off all of these boxes. This, in addition to its booming tourism, makes the area great for most real estate investments.
Still not sure whether you should invest in the Hampton Roads real estate market? We’ve got you covered! In this article, the experts at KRS Holdings will go over the top reasons to buy an investment property in Hampton Roads, VA.
Keep reading to discover the major factors that make this area ripe for high-ROI investments.
Why Invest in Hampton Roads, VA, Rental Properties
Located in southeastern Virginia, Hampton Roads is a metropolitan region that comprises 17 cities, counties, and towns. This includes the areas of Chesapeake, Franklin, Hampton, Newport News, Virginia Beach, Smithfield, and Williamsburg.
As one of the most prominent residential areas in the Tidewater Region, Hampton Roads is a prime area for real estate investments.
The area’s high military presence, strong local economy, and booming tourism mean that there is a high demand for rental accommodation all year round. Keep reading to discover other major factors that make Hampton Roads a great area to invest in!
1. Strong Local Economy
One of the primary factors that make Hampton Roads a good area for real estate investments is its strong local economy. Since the 80s, Hampton Roads has been an international leader in waterborne commerce and export. It’s no wonder why, nowadays, the area is known as the “world’s greatest natural harbor.”
In addition to this, Hampton Roads is the country’s leader in coal exports. Other major industries contributing to the area’s great economy and strong job market include the military, healthcare, and retail. Ultimately, the strength of Hampton Roads’ local economy creates a favorable climate for real estate investors.
2. Booming Tourism
At the heart of Hampton Roads’ strong local economy is its tourism sector. The area’s pristine beaches, plenty of historical sights, and many local attractions bring in thousands of visitors throughout the year.
Some of the major attractions in the area include Virginia Beach, the Virginia Beach Oceanfront, Buckroe Beach & Park, First Landing State Park, False Cape State Park, and Colonial Williamsburg.
Residents and visitors alike can enjoy a myriad of outdoor and recreational activities in these places, from camping facilities and hiking trails to nature and history tours.
Additionally, the region is also home to multiple amusement parks, which attract tourists and locals alike. Some of the most popular attractions include Atlantic Fun Park, Ocean Breeze Waterpark, Shipwreck Golf, Motor World, Busch Gardens Williamsburg, and Water Country USA.
There are also plenty of museums in the area, including the Mariners' Museum, the Virginia War Museum, and the NASA Langley Research Center in Hampton.
With so many things to do, there is a big flow of tourists coming into the area all year round. Not everyone wants to stay in a hotel or high-end resort during their trip. This means there is a strong potential for short-term rentals and Airbnb’s in Hampton Roads!
3. Great Local Climate
Due to its prime location in the Tidewater Region, Hampton Roads, Virginia, has a great climate all year round. Typically, the summers are warm and sunny, while the winters tend to be windy and on the colder side.
Most of the time, the climate is rather humid and sunny, with temperatures rarely rising above 94°F or sitting below 20°F.
The warm climate of Hampton Roads is a major selling point for many visitors and renters. As a real estate investor, you can earn high profits by renting your Hampton Roads property to snowbirds traveling from up North during the colder months.
4. Strong Rental Market
All cities in Hampton Roads have a high demand for rental accommodations with over 30% of its residential properties occupied by renters.
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The renter demand comes from a variety of sources, including military members wanting to move close to the many military bases in the region, students enrolled in any of the area’s public and private universities, and young professionals looking for new job opportunities.
Plus, with the steady stream of visitors that the region welcomes every year, there is a high demand for short-term rentals. So, you can rest assured that your Hampton Roads rental won’t stay vacant for long!
5. Affordable Real Estate
After all this talk about a booming economy, it may come as a surprise to learn that there are great property deals available on the local market. But the real estate market in Hampton Roads is booming.
While properties have appreciated significantly over time, homes in this area are still very affordable. However, the market can be rather competitive, with homes only spending approximately 34 days on the market before being sold.
According to Market Minute, the active inventory of homes for sale in Hampton Roads is over 2,500 units, as of March 2024. Moreover, the median price of homes in the area is way below the national average.
This means that, as an investor, you can get more for their money in Hampton Roads than in other comparable areas!
Bottom Line
The area of Hampton Roads offers a high quality of life for its residents and a great opportunity for real estate investors. Thanks to the region’s strong local economy, booming tourism, great local climate, and healthy rental market, most real estate investments pay off.
If this is your first time investing in real estate, consider partnering with KRS Holdings! With our years of experience, we can smoothen out the process for you and help you avoid common pitfalls.