CoStar Expansion: Richmond Real Estate Impact

Quick Answer: CoStar Group's major downtown Richmond campus expansion is drawing thousands of high-income jobs to the city, creating strong tailwinds for sellers and rental-property investors in neighborhoods from the Fan District to Midlothian and Chesterfield County.

Written by Mike Boone, Owner and Broker of Boone Residential, a Richmond, VA brokerage. Licensed by the Virginia Real Estate Board.

How is the CoStar Group expansion affecting Richmond's real estate market?

CoStar Group officially opened its new downtown Richmond campus, Foundry Park, on July 15, 2026 — and it's one of the most consequential economic development events the region has seen in years. As thousands of well-paying tech, research, and sales jobs anchor downtown, demand for housing is rising across Richmond's residential submarkets, from close-in urban neighborhoods like the Fan District and Carytown to suburban communities in Chesterfield, Henrico, and Midlothian. For sellers and investors paying attention, this shift creates real, near-term opportunity.

What the Foundry Park Campus Means for Richmond's Economy

CoStar Group is one of the world's largest commercial real estate information and analytics companies. Its new $460 million Foundry Park campus sits on Tredegar Street between South Fifth and Seventh Streets, overlooking the James River near Brown's Island — connecting to CoStar's existing office at 501 S. 5th Street. This is not a proposal or a groundbreaking anymore; the campus is built, open, and already reshaping the city's downtown riverfront.

The scale here matters. CoStar had roughly 2,300 employees in Richmond before the expansion. The new campus was built with capacity for up to 4,000 employees, with the company expecting the completed campus to house around 3,500 people at full build-out. CEO Andy Florance has been direct about why: the company needed more space than Richmond's existing office market could offer, and it chose to build rather than relocate elsewhere.

Large-scale corporate campuses don't just fill office space — they generate housing demand, retail activity, and infrastructure pressure across a wide geographic ring. In Richmond's case, that ring extends well beyond the downtown core.

Worth noting: CoStar went through a round of layoffs in early 2025 tied to AI-driven efficiency initiatives, even as it continued investing in Richmond. That's a useful reminder that not every job category grows in a straight line — but the company's physical commitment to the city, now fully built and occupied, is the more durable signal for real estate demand than any single year's headcount move.

Who is actually moving here?

The workers CoStar is recruiting skew toward higher income brackets. Data analysts, software engineers, product managers, and corporate sales staff earning competitive salaries are the target demographic. According to U.S. Census Bureau QuickFacts for Richmond City, the city's median household income has been rising, and an influx of higher-earning workers accelerates that trend.

These buyers and renters are not shopping for the lowest-price option. They are looking for walkable urban neighborhoods, quality schools nearby, commute-friendly suburban communities, and homes that reflect the lifestyle they are building. That profile maps directly onto neighborhoods like the Fan District, Carytown, Glen Allen, and the Midlothian corridor in Chesterfield County.

What This Looks Like on the Ground in Richmond's Housing Market

Here is where the data gets concrete. Recent Zillow market data for the Midlothian area shows a median sale price of $470,000, with homes selling in a median of 24 days. There are currently 423 active listings, 224 new listings added in the last 30 days, and 541 homes sold in the trailing 90-day period. That pace reflects a market where demand is steady and inventory, while present, is moving.

For sellers and investors trying to understand where Foundry Park's impact will be felt most, I think about it in two rings.

The urban core and close-in neighborhoods

The Fan District, Carytown, Scott's Addition, and Manchester are the neighborhoods closest to the new campus. Workers who want to walk or bike to the office, or keep a short commute, will compete for housing in these areas. Rental demand in particular tends to spike first when a major employer opens, because relocating workers often rent before buying. That dynamic benefits investors who own or are considering multifamily or single-family rental properties in these zip codes.

Local MLS data provides the clearest picture of what's actually happening in these neighborhoods — from current inventory and recent sales to days on market and absorption rates. For an accurate, up-to-date view of what's listed, what's selling, and how quickly the market is moving, CVR MLS data is the best place to start.

The suburban ring: Chesterfield, Henrico, and beyond

Not every Foundry Park employee will want to live downtown. Families with children, buyers prioritizing space, and workers who simply prefer suburban living will look outward. That means Midlothian, Chester, Moseley, Hallsley, Founders Bridge, Tarrington, RounTrey, and Glen Allen all stand to benefit from increased buyer demand.

Chesterfield and Henrico Counties have both seen strong residential permit activity in recent years. According to Chesterfield County's Department of Planning, the county has been one of the fastest-growing localities in Virginia, and new construction continues to absorb demand while resale inventory remains competitive. A sustained influx of higher-income buyers from a major employer's fully-opened campus puts additional pressure on that supply-demand balance.

If you are thinking about what this means for your investment strategy, I walk through the broader investment picture in more detail over at Is Richmond, VA a Good Market for Real Estate Investing in 2026?

Source: Recent Zillow market data, Midlothian area, as of August 2026. Individual home values vary by condition, street, build year, and timing.

For a broader look at how values are trending across the Richmond region, Are Home Values Rising or Falling in Richmond, VA? covers the longer-term picture.

What Sellers Should Know Right Now

If you own a home in any of these submarkets and have been on the fence about selling, a fully-opened, 3,500-person employer downtown is exactly the kind of tailwind that supports strong buyer demand. That said, the opportunity is not automatic. Pricing, condition, and timing still determine whether you get multiple offers or sit on the market.

The Virginia REALTORS® Research Center publishes monthly and quarterly housing reports that track median prices, days on market, and sales volume at the county level. Those reports are worth reviewing before you make a move.

Your specific number — what your home is worth and what you will net — depends on your property's condition, location within the submarket, and the timing of your listing. That is exactly the kind of analysis I do with sellers before we ever put a sign in the yard.

What Investors Should Be Watching

Major employer campuses create a window of opportunity for investors who move before the broader market fully prices in the demand. Foundry Park is now open and occupied, not a future promise — which means the demand curve it drives is already underway, not still speculative.

A few areas worth watching:

• Single-family rentals in commuter-friendly zip codes. Workers who are relocating and not yet ready to buy will rent, often for 12 to 24 months, before purchasing. Chesterfield and Henrico neighborhoods with easy access to I-64 and Route 288 are natural targets.
• Multifamily near the urban core. The Tredegar Street/Brown's Island area, Manchester, and Scott's Addition have seen significant multifamily development, and Foundry Park's presence reinforces the case for continued rental demand in those submarkets.
• Resale homes in established Midlothian communities. Hallsley, Founders Bridge, Tarrington, and RounTrey attract buyers who want finished, move-in-ready homes in established neighborhoods. As more CoStar employees become buyers, competition in these communities will likely intensify.

The National Association of REALTORS® Research and Statistics platform tracks investor activity, buyer demographics, and market trends at the national level, which provides useful context for how employer-driven demand plays out in comparable markets.

Every situation is different, and the only way to know whether a specific property or neighborhood fits your goals is to run the numbers with someone who knows this market. That is the conversation I have with every investor and seller who comes to me with a question like this.

Frequently Asked Questions

How does the CoStar Foundry Park campus affect home prices in Richmond?

CoStar's fully-opened Foundry Park campus is drawing thousands of higher-income workers to downtown Richmond, which puts upward pressure on prices in neighborhoods near the campus and in commuter-friendly suburbs. In the Midlothian area, recent Zillow market data shows a median sale price of $470,000 with homes moving in about 24 days, reflecting a competitive market. Whether and how much a specific property benefits depends on its location, condition, and timing.

Where is CoStar's new Richmond campus located?

Foundry Park sits on Tredegar Street between South Fifth and Seventh Streets, overlooking the James River near Brown's Island in downtown Richmond — not in Scott's Addition, which is a separate neighborhood. The campus connects to CoStar's existing office building at 501 S. 5th Street.

Is now a good time to sell a home near Richmond's CoStar campus?

A fully-opened, multi-thousand-employee campus is a favorable backdrop for sellers, since it represents realized demand rather than a future promise. That said, timing, pricing, and condition still determine your outcome. The best way to know what your home is worth and whether the moment is right for you is to get a current market analysis from a local agent who knows your specific submarket.

Which Richmond neighborhoods are most likely to see investment demand from CoStar's growth?

Close-in urban neighborhoods like the Fan District, Carytown, Scott's Addition, and Manchester are most directly in the path of demand from workers who want to live near downtown. Suburban communities in Chesterfield and Henrico, including Midlothian, Glen Allen, Chester, and Moseley, will attract buyers who prefer more space. Both rings present opportunities, but the right fit depends on your investment goals and timeline.

Will CoStar's growth affect rental rates in Richmond?

Relocating workers typically rent before buying, which increases rental demand in neighborhoods near major employers and along commuter corridors. That dynamic tends to support rental rates and reduce vacancy, particularly in multifamily properties near the downtown core and in well-located single-family rentals in Chesterfield and Henrico. Local rental market conditions vary by submarket, so investors should review current data from REIN or a local property manager before making decisions.

The Bottom Line

CoStar's Foundry Park campus is not just a corporate real estate story — it's an open, occupied, $460 million commitment to downtown Richmond, and it's already shaping demand across Chesterfield, Henrico, and the city itself. Whether you are pricing a home to sell or evaluating an investment property, understanding how a fully-realized employer expansion shapes demand is the kind of context that helps you make a better decision.

If you want to talk through what this means for your specific situation — pricing a home to sell or evaluating an investment property — I am glad to walk you through it. Schedule a call with me here and we will start with your goals.

About Mike Boone

Mike Boone is the Owner and Broker of Boone Residential, a Richmond, VA real estate brokerage where he serves as a trusted advocate for buyers and sellers and has fueled the company's growth through authentic, client-first service.

Boone Residential · 804-409-8655

Equal Housing Opportunity. Boone Residential is regulated by the Virginia Real Estate Board. This article is general information only and is not legal, tax, or financial advice. All information is deemed reliable but not guaranteed and should be independently reviewed and verified. Readers should confirm their own numbers with their attorney, tax advisor, lender, or closing officer.