October 2025 Real Estate Market Trends in Charlottesville and Albemarle County VA
Including average home prices, inventory levels, and buyer demand. Identifying any emerging trends or opportunities for investment
Average Charlottesville & Albemarle County home prices:
Charlottesville: The year-to-date median sales price reached $479,001 as of May 2025. An earlier May 2025 report cites a 3% price increase to a median of $541,058 in Albemarle County, which likely includes Charlottesville. Annual appreciation rates have been around 5-7%, though recent increases may be tempered by higher mortgage rates.
Albemarle County: The median home price in Albemarle County was $541,058 in May 2025, up 3% from the previous year.
Inventory levels:
Low supply: Despite a slight increase in listings, inventory remains well below pre-pandemic levels.
Slow construction: Constraints from zoning laws and high land costs contribute to the limited supply of new housing.
Tight market: In September 2025, the Charlottesville MLS had 769 active listings. A May 2025 report noted 327 active listings in Albemarle County, with a 2.9-month supply, indicating a tight market.
Quick sales: Properties that are priced competitively sell quickly, with an average time on market of 18 days reported in May 2025.
Buyer demand:
Persistent demand: Buyer interest remains strong, fueled by university affiliates, healthcare professionals, and remote workers.
Price-sensitive buyers: While demand is high, buyers are more sensitive to pricing due to current mortgage interest rates. Overpriced properties may linger on the market.
Hot Charlottesville neighborhoods: Desirable areas like Belmont, Crozet, and Ivy are seeing premium pricing. Homes for sale near UVA command significant premiums.
Emerging trends and investment opportunities:
Rental investments: The proximity of UVA creates consistent rental demand for both students and faculty, making properties near campus a strong investment. Rental returns of 5-8% are achievable for well-located properties.
Value-add properties: Investors can find opportunities in purchasing properties that need cosmetic updates in emerging neighborhoods.
Work-from-home trend: The sustained interest in properties with acreage, fueled by the work-from-home movement, is expected to keep demand steady for farms and estates.
Targeted investments: Investors can focus on student housing conversions or long-term holds in prime locations to capitalize on mortgage paydown and appreciation.
Seller’s advantage: Despite price moderation, low inventory and steady demand mean sellers in 2025 are in a strong position, but competitive pricing is still key.
Types of properties that make good rental investments in Charlottesville
There are several property types in Charlottesville and Albemarle County that offer strong rental investment potential, primarily driven by the consistent demand from the University of Virginia (UVA) community and the area’s appeal to young professionals and remote workers.
Student housing
Properties near the University of Virginia are highly sought after by students, guaranteeing a reliable tenant pool and premium rents during the academic year.
Locations near “The Corner,” Central Grounds, and the UVA Medical Center are particularly desirable due to their walking-distance access to campus life and amenities.
Options for student housing include:
Single-family homes near campus that can be rented out by the room to a group of students.
Multi-family units such as duplexes and triplexes, which offer multiple income streams.
Condos and apartments near campus, which are attractive to both undergraduates and graduate students.
Short-term rentals
Charlottesville’s robust tourism sector, fueled by UVA events, historical sites like Monticello, and the surrounding Monticello Wine Trail, creates a strong market for short-term vacation rentals.
Prime locations: Properties in the Downtown Charlottesville area, the walkable Lewis Mountain neighborhood, or in the scenic Albemarle wine country can command high nightly rates and occupancy rates.
Regulations: Investors should research and comply with local regulations, as the city has specific ordinances governing short-term rentals.
Property types: Luxury Charlottesville townhomes, vineyard cottages, and boutique apartments perform well in the short-term rental market.
Professional rentals
Young professionals, healthcare workers, and remote workers are drawn to Charlottesville’s quality of life and seek well-maintained housing with modern amenities.
Property types: Executive-style townhomes, condos, and single-family homes in desirable neighborhoods appeal to this demographic.
Locations: Neighborhoods with amenities, good school ratings, and high walkability tend to be most attractive to professional renters.
Properties with renovation potential
Investing in properties that require cosmetic updates or minor repairs can be a profitable strategy, as they often sell below market value.
Value-add opportunities: Upgrading kitchens, bathrooms, and curb appeal can significantly increase both the property’s value and its rental income potential.
Strategic locations: Seeking these properties in emerging neighborhoods can allow investors to capitalize on future growth.
Historic homes
Charlottesville’s historic homes, particularly in neighborhoods like Rugby and Venable, offer long-term value appreciation and can be less susceptible to market downturns.
Strong appreciation: Well-maintained historic homes can appreciate faster than newer construction in the same area.
Incentives: State and local tax incentives or grants for historic preservation can make these investments more financially attractive.
Charlottesville Farms
For a niche market, equestrian estates and farms offer unique investment potential, especially for long-term investors focused on land appreciation.
Profit potential: The land can be used for agricultural ventures, such as vineyards or equestrian businesses, or simply held for future value growth.
Lifestyle appeal: These properties cater to remote workers and others seeking more space and a connection to nature.
For more information about October 2025 Real Estate Market Trends in Charlottesville and Albemarle County VA contact Toby Beavers.
Toby Beavers, a savvy Charlottesville real estate agent since 2003, may be reached by text or phone at 434-327-2999
