Richmond, Virginia: Washington D.C.’s New Sister City and So Much More

The number of people working from home tripled between 2019 (5.7%) and 2021 (17.9%). For those working in Washington, D.C., this total rose to 48.3% in 2022, giving the city the highest percentage of home-based workers in the country. Just 100 miles south, an easy train-ride or a short drive away, sits Richmond, Virginia – a city with a growing arts, culture and entertainment scene, less traffic and an enticing price-point.

The trend of “sister cities” isn’t a new one. Los Angeles has Bakersfield; Denver has Colorado Springs; Dallas has Fort Worth; Seattle has Tacoma; Phoenix has Tucson. Now, Washington, D.C. has Richmond, and this trend is expected to hold for the long term.

The average number of transplants from Northern Virginia (Washington, D.C. suburbs) to Richmond increased 36% during 2021 and 2022, compared to the range between 2010 and 2019. Train ridership between the two cities also increased 26% from July 2019 through July 2022.

Inflation and cost-of-living increases have become a massive burden on households. Prices for shelter alone increased 7.9% between January 2022 and January 2023.¹ Yet while D.C.’s average rent is $2,356, Richmond’s average is $1,458 – and Richmond’s average apartment size is 13.45% larger.²

Yet not only is Richmond an easy commute to Washington, D.C. This mid-sized city is a world-class place to live, work and play all on its own.

Richmond, Virginia is one of our nation’s oldest cities, yet it is modern and vibrant. It’s the #10 Arts District in the U.S. and has become known as one of the South’s top food destinations.

Over 10 Fortune 1000 companies have their headquarters in Richmond, including: 

• Dominion Energy
• Altria
• Owens & Minor
• Markel
• Arko
• Genworth
• CarMax
• Performance Food Group
• ASGN
• Universal (tobacco)
• NewMarket
• Brink’s

Numerous national and international corporations have recently relocated to the greater Richmond region, including:

• Amazon
• CoStar
• LEGO
• Mondelez International (Oreo & Ritz)
• Plenty (“the world’s largest indoor vertical farming campus”)
• Meta (Facebook)

It’s no surprise why workers in Washington, D.C. and across the nation are relocating to call Virginia’s capital their new home. Richmond is not only the fastest growing region in Virginia; it’s also seen the 15^th highest population growth in the nation, among cities with 1 million or more people.

What does this mean for investing in Richmond real estate and how Capital Square is building the future of Richmond? Learn more about our latest open offerings, or contact our team to learn more.

¹ U.S. Bureau of Labor Statistics, February 16, 2023

²  ibid.