Virginia Beach is becoming an increasingly popular destination for real estate investment, especially for those looking to invest in rental properties. With its seaside location, thriving tourism industry, and growing population, Virginia Beach offers investors a lot of benefits. Here are some of the key reasons why Virginia Beach is a good choice for real estate investment.
Steady Population And Job Growth Fuels Housing Demand
Virginia Beach has experienced steady population growth over the past decade, rising from 438,000 in 2010 to over 450,000 residents today. Job growth has also been strong, thanks to increased tourism and the presence of military bases. This combination of population and job growth continues to fuel demand for both owner-occupied and rental housing throughout Virginia Beach.
High Rental Yields Compared To Other Coastal Markets
Rental yields in Virginia Beach tend to be higher than many other East Coast beach destinations. For example, average gross rental yields range from 8-12% for single family homes, compared to 5-8% yields in parts of Florida, California, and Hawaii. The relatively affordable housing prices coupled with strong rental demand enables investors to achieve higher returns.
Robust Tourism Industry Provides Rental Income
As a prime East Coast beach destination, Virginia Beach hosts millions of tourists every year. This provides a built-in source of demand for vacation rental properties. Investors can generate significant rental income by catering to the tourism market through platforms like Airbnb and Vrbo. The beachfront location and abundance of entertainment and dining options make properties in Virginia Beach highly coveted.
Military Presence Brings Steady Rental Demand
The strong military presence around Virginia Beach also contributes to rental housing demand. Nearby bases like Naval Air Station Oceana, Joint Expeditionary Base Little Creek-Fort Story, and Joint Base Langley-Eustis are major sources of renters. Military families are often renters, creating a stable tenant base for investors.
Appreciation Potential As Market Grows
While past performance doesn’t guarantee future returns, Virginia Beach real estate has seen steady price appreciation over the past decade. As the city’s population and economy expand, demand for both owner-occupied and investment properties should remain strong. This suggests Virginia Beach has potential for continued real estate appreciation going forward.
With its coastal lifestyle, tourism industry and military presence, Virginia Beach offers investors a lot of benefits as a real estate investment market. Steady population growth, high rental yields and ample appreciation potential make it one of the most appealing investment destinations on the East Coast.