Norfolk

VAHampton Roads (Virginia Beach-Norfolk-Newport News)

Real Estate Market Analysis

Q3 2025 Report
$315,000–$335,000 (up 2.1–3.8% YoY)
Median Home Price
238,000 (2024 estimate)
Population
$58,000 (2024 estimate)
Median Income
Norfolk Public Schools: 5/10 (average, with standout magnet and specialty programs)
School District Rating

Market Overview

Property Values

$315,000–$335,000 (up 2.1–3.8% YoY)
Median Home Price
$195–$216 (up 4.1–8.0% YoY)
Price per Sq Ft
2.1%–3.8% increase YoY (2024–2025)
YoY Change

Market Performance

Days on Market26–37 days (homes selling quickly)
Market TypeSeller-leaning, but inventory is rising
Months of Supply~5 months (1,515 homes for sale in June 2025, up 5.5% MoM)

Sales Activity

Sales Volume302 homes sold in April 2025 (up from 276 YoY)
Metro AreaHampton Roads (Virginia Beach-Norfolk-Newport News)
Population238,000 (2024 estimate)

Economic Indicators

Employment & Growth

Unemployment Rate~3.5% (2025 estimate, consistent with regional trends)
Job Growth Rate1.2% (2024–2025, steady)
Median Household Income$58,000 (2024 estimate)

Major Employers

  • Naval Station Norfolk
  • Sentara Healthcare
  • Old Dominion University
  • Norfolk Southern Corporation
  • City of Norfolk

Demographics

238,000 (2024 estimate)
Population
31.5 years
Median Age
Stable, slight growth (~0.5% YoY)
Population Growth
32% bachelor’s degree or higher
Education Level

Family Composition

Mix of military families, young professionals, retirees, and students

Key Industries

Military/DefenseHealthcareEducationTransportation/LogisticsTourism

Education

School District

Norfolk Public Schools: 5/10 (average, with standout magnet and specialty programs)
District Rating

Top Schools

  • Norfolk Academy
  • Maury High School
  • Granby High School

Higher Education

  • Old Dominion University
  • Norfolk State University
  • Eastern Virginia Medical School

Infrastructure & Development

Major Projects

  • Waterside District revitalization
  • St. Paul’s Transformation Project
  • Naval Station modernization

Transportation

  • Light rail expansion (The Tide)
  • Norfolk International Airport upgrades
  • Port of Virginia enhancements

Planned Developments

  • Mixed-use developments in Downtown and East Beach
  • Affordable housing initiatives

Lifestyle & Amenities

Recreation

  • Chesapeake Bay beaches
  • Elizabeth River Trail
  • Norfolk Botanical Garden

Dining & Entertainment

  • Waterside District
  • Ghent restaurants and nightlife
  • NEON Arts District

Cultural Attractions

  • Chrysler Museum of Art
  • Virginia Opera
  • Nauticus Maritime Center

Investment Analysis

Investment Opportunities

  • Rising home values in historic and waterfront neighborhoods
  • Strong rental demand from military and students
  • Potential for value-add in older housing stock

Growth Outlook

Moderate appreciation expected through 2025; stable rental demand

Market Risks

  • Affordability pressures for first-time buyers
  • Interest rate sensitivity
  • Localized oversupply in some submarkets

Rental Market

Strong, with high occupancy and steady rent growth (average rent ~$1,550/mo)

Marketing Intelligence

Target Demographics

  • Military families
  • Young professionals
  • Investors
  • First-time buyers

Marketing Channels

  • Zillow/Realtor.com
  • Facebook/Instagram ads
  • Military relocation networks

Pricing Strategies

List at or just below market to drive competition; adjust quickly if no offers in 2 weeks

Common Objections & Response Strategies

Objection: Home prices are too high for my budget

Response Strategy:

Show value in equity growth, suggest lender programs, and highlight lower-cost neighborhoods

Objection: School ratings are average

Response Strategy:

Emphasize specialty programs, private and charter options, and proximity to top-rated schools

Objection: Flood risk and insurance costs

Response Strategy:

Provide flood zone maps, explain mitigation steps, and connect with insurance experts

Professional Recommendations

1

Advise sellers to price aggressively and stage homes for fast sales

2

Educate buyers on financing options and market trends

3

Target marketing to military and university-affiliated buyers

4

Monitor inventory and adjust pricing strategies quickly

5

Highlight Norfolk’s unique lifestyle amenities and investment potential

Competitive Analysis

Comparable Markets

  • Virginia Beach, VA
  • Chesapeake, VA
  • Richmond, VA

Market Positioning

Affordable alternative to Virginia Beach with strong rental and resale potential

Competitive Advantages

  • Lower median price than Virginia Beach
  • Strong rental demand from military and students
  • Waterfront and historic neighborhoods

Price Comparison

Norfolk median price ($315K–$335K) is lower than Virginia Beach ($400K+) and Richmond ($350K+)

Investment Metrics

5.5%–6.5% (multi-family, 2025)
Cap Rates
~6% gross yield
Rental Yields
16–18 (favorable for investors)
Price-to-Rent
Positive cash flow possible in select neighborhoods, especially with value-add
Cash Flow
2–4% annual appreciation expected through 2025
Appreciation

Buyer Journey Insights

First-Time Buyers

Face affordability challenges; benefit from down payment assistance and FHA/VA loans. Need fast action due to competition.

Move-Up Buyers

Leverage equity gains; seek larger homes in established neighborhoods. Motivated by lifestyle upgrades.

Downsizers

Prefer low-maintenance condos/townhomes near amenities; value walkability and access to healthcare.

Investors

Focus on multi-family and value-add single-family; strong rental demand from military and students.

Relocators

Military and job-related moves common; prioritize proximity to bases, schools, and transit.

This city analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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