CoStar Group, a real estate analytics company with a large footprint in Richmond, laid off about 120 local employees on Thursday but also announced a new hiring push.
The job cuts represent a complication for one of the area’s largest and fastest-growing companies. CoStar, which owns Homes.com and Apartments.com, employs almost 2,400 people in Richmond, many of whom work for the Homes.com marketplace.
Cuts occurred across many departments, said Michael Desmarais, CoStar’s chief human resources officer. Affected employees included writers, editors, video staff, production staff and senior managers, people familiar with the matter said. They were called into a room in groups on Thursday morning and told they would lose their jobs. They included high- and low-performers, new employees and longer-tenured staffers, the people said.
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The company selected the employees based on a need for better efficiency, to respond to technological developments and to remove low performers as part of annual performance reviews, Desmarais said. Content creators at Homes.com have produced articles and videos about tens of thousands of neighborhoods across the country, and the rise of artificial intelligence could affect how that information is gathered.
“At our core, we’re a technology company,” Desmarais said. “We’re constantly looking for technology enhancements.”
Affected employees will receive severance, but Desmarais declined to offer details of those packages. The human resources officer added that CoStar pays its employees a high wage and expects a high level of performance.
Construction continues on CoStar Group’s new building near Brown’s Island in Richmond on Feb. 20. The 21-story office tower is expected to open in 2026.
On Thursday, the Arlington County-based company also said it expects to hire 1,000 employees in 2025, mostly in Richmond. Already this year, CoStar has added nearly 400 new hires, and the company is building a 21-story office tower on South Fifth Street near Brown’s Island that is expected to open in 2026.
“We’re hiring far more people than were let go,” Desmarais said.
During the company’s earnings call last week, executives told investors they would see a “rotation” in where the company spends its money in Homes.com. Founder and CEO Andy Florance said there would be a shift in the ratio of employees in sales, versus employees producing Homes.com.
“We are in no way increasing our investments on content, or any of those other initiatives,” Florance said on the call. “We made tremendous progress on building that content in prior periods, and what really matters now is controlling our costs.”
To work at Homes.com, CoStar will hire 500 sales professionals and 100 new market analysists. The company will add 100 analysts to work on lease-management platforms following CoStar’s acquisition of a lease management and accounting platform called Visual Lease. And the company will hire an additional 300 employees in research, technology, sales and other departments.
On Homes.com, real estate agents can advertise themselves and the homes they are selling on the platform. Unlike Zillow, where agents often have to compete against the internet giant, real estate agents can work hand in hand with Homes.com, Florance said.
In addition to the new hires, the workforce will grow by 500 when CoStar completes its acquisition of Matterport, a California-based mapping company. Those employees will not relocate to Richmond.
Once the downtown tower is finished, the number of employees in Richmond will reach 3,500, the company said. About four years ago, the company pledged to the city that it would hire 2,000 employees, but it has already surpassed that number.
“We’re well outpacing the hiring commitment we made,” Desmarais said.
Altogether, CoStar employs nearly 7,000 people worldwide in 74 offices. The Homes.com network drew 110 million unique visitors in the fourth quarter of 2024, according to Google Analytics.
‘I was just in shock’
Carol Parish moved to Richmond from Raleigh, North Carolina when she was hired last year to write content for Homes.com. She made an $8,000 down payment on a new construction home in Chester and signed up to run in the Monument Avenue 10k. Her husband and granddaughter planned to move here in June.
“We were all in,” she said.
On Thursday morning, she and others got an email telling them to attend a mandatory meeting in the cafeteria in about 15 minutes. A company leader told about 50 employees that Homes.com was being restructured, that three executives from the website had been let go and that they were losing their jobs, too. Parish and the others were told to go back to their desks to get what they needed. The company would ship the rest.
“I was just in shock,” said Parish, who was told she would receive eight weeks’ severance.
She had only worked at the company for about six months and never received a performance review, she said. She doesn’t know why she was picked for a layoff.
Morale suffered last month, she said, when employees were asked to come back to the office on the fourth day of the water crisis, even though some of them had not been able to shower, and workers were using hand sanitizer to wash their hands in the bathroom. Later, they were told they could no longer work remotely on Fridays.
Though there was pressure, she loved the work, writing profiles of neighborhoods and cities throughout the country. Seeing the Homes.com commercials during the Super Bowl made her feel like she was part of a growing team.
Now she plans to move back to Raleigh.
“Now it just feels like, ‘Oh my gosh, you’re just a cog in the wheel,’ “ she said.
Where in the U.S. Does a Middle-Class Income Stretch the Furthest?
Where in the U.S. Does a Middle-Class Income Stretch the Furthest?
Photo Credit: NDAB Creativity / Shutterstock
As economic pressures mount, middle-class families across the U.S. are finding it increasingly difficult to cover essential living expenses while maintaining a comfortable lifestyle. Rising costs for housing, healthcare, childcare, and transportation have placed additional strain on household budgets, leaving many unable to save or spend on discretionary items. While these financial pressures affect families nationwide, the degree to which a middle-class income stretches varies significantly depending on location.
This report examines where in the United States middle-class families can achieve the most financial security. By comparing the income required to cover essential expenses to the median family income in each location, the findings highlight areas where households have the most financial breathing room. To control for variations in family size and composition across locations, all of the statistics used are for 2-adult households with 2 children. The results shed light on how regional differences in cost of living and wages impact the ability of middle-class families to invest in more than just getting by — whether that means saving for retirement, spending on recreation and entertainment, or taking a vacation.
Here are some key takeaways from the report:
- National Overview: Across the U.S., the average middle-class family has $21,939 in available income after covering essential expenses. Housing, childcare, and healthcare account for the largest shares of the $108,061 in income required to cover basic necessities.
- Top and Bottom Cities: Cities like San Jose; Washington, D.C.; and Seattle top the list of large metros due to exceptionally high median family incomes that outpace their elevated costs of living. Conversely, Los Angeles ranks near the bottom due to a combination of high costs and lower-than-expected incomes for middle-class families, leaving little leftover income after necessities.
- Counterintuitive Findings: Some high-cost cities rank well because their median incomes are proportionally higher, allowing families to retain more after necessities. Meanwhile, some lower-cost cities struggle due to incomes that fail to keep pace with even modest expenses, highlighting disparities across different economic regions.
- Take-Home Income Caveat: While the analysis focuses on available income after necessities, this figure does not account for additional taxes owed on leftover income. Families may choose to invest some or all of this income in pre-tax savings plans, such as retirement accounts, which makes estimating tax amounts not feasible.
Top Cities for Middle-Class Earners
While affordability might seem synonymous with lower living costs, the cities where middle-class families enjoy the most financial breathing room often defy expectations. Some of the most expensive areas in the U.S., such as San Jose; Washington, D.C.; and Seattle, top the list of cities where families have the most available income after covering necessities. The key to this counterintuitive trend lies in the high median family incomes in these regions, which outpace their elevated living costs. These cities, which are often hubs of technology, government, and research, enable middle-class households to maintain a comfortable lifestyle despite the higher price of essentials.
In San Jose, for example, the median family income for 2-adult households with 2 children is an impressive $230,000 — far exceeding the national median of $130,000. Although the cost of necessities is higher, with housing alone accounting for $34,993 annually, families still retain $65,798 after covering essential expenses. Similarly, Washington, D.C., and Seattle, both known for thriving economies and high-paying industries, provide middle-class families with $64,686 and $61,344, respectively, in available income after necessities.
Many of the top-performing cities on this list share common characteristics as centers for innovation, education, and professional opportunities. Places like Austin and Boston, which rank fifth and sixth, respectively, exemplify how strong local economies with high-paying jobs can offset higher living costs. Despite Boston's significant housing costs — averaging $28,819 annually — its high median income of $200,000 enables families to retain over $54,000 after covering necessities.
At the other end of the spectrum, cities in California, Nevada, and Florida highlight how stagnant incomes or disproportionately high costs can strain middle-class budgets. Los Angeles, for instance, is infamous for its high housing costs, averaging $27,581 annually. With a median family income of $136,800, families in L.A. have just $2,626 left after covering their essential expenses. Meanwhile, Fresno, despite having a cost of living close to the national average, ranks near the bottom due to a lower median income of $109,600, leaving families with only $8,089 in available income. Similarly, Las Vegas and Miami suffer from below-average incomes combined with rising housing and childcare costs, further limiting families' financial flexibility.
These findings highlight the complex interplay between wages and living costs. While expensive cities often provide middle-class earners with higher disposable income, families in more moderately priced locations can face tighter financial constraints if wages fail to keep pace with cost of living.
Top States for Middle-Class Earners
The states where middle-class families fare best present a diverse mix of geographies, economies, and living costs. While many of the top-ranking states are in the Northeast, known for their higher wages and strong economies, the list also includes states from the Midwest and Great Plains, where a lower cost of living allows incomes to stretch further. Conversely, states where middle-class families struggle the most are often characterized by stagnant wages, high costs of living, or a combination of both, with several Western and Southern states ranking near the bottom.
Maryland leads the nation, offering middle-class families an average of $55,657 in available income after necessities. Despite moderately high housing and childcare costs, the state’s high median family income of $168,000, driven by its proximity to the economic hub of Washington, D.C., ensures families retain substantial financial flexibility. Other top-performing states, like New Jersey and Massachusetts, follow a similar pattern, benefiting from robust local economies centered around finance, technology, and healthcare.
Interestingly, North Dakota, ranked third, highlights how smaller, more rural states can provide exceptional opportunities for middle-class families. With a low median income requirement to cover necessities ($84,426), North Dakota allows families to retain $49,274 after essentials — thanks to relatively low housing, food, and childcare costs.
At the bottom of the rankings, there’s a striking mix of states with both extremely high and relatively low living costs. On the high-cost side, California and New York illustrate how even substantial incomes can be overwhelmed by exorbitant expenses. In California, a median family income of $142,000 is offset by housing costs averaging $25,840 annually, along with significant expenses for childcare and taxes. Similarly, New York’s median income of $144,000 is eroded by steep housing costs and the highest childcare expenses and taxes in the country, leaving families with just $7,141 in available income after necessities.
On the other hand, lower-cost states like West Virginia, Wyoming, and New Mexico rank poorly due to incomes that lag behind even modest living expenses. In West Virginia, for example, the median family income of $101,000 is not enough to meet the $102,474 required to cover necessities, making it the only state where families face a deficit. Similarly, Wyoming residents face below-average incomes paired with above-average costs in certain categories that outpace what middle-class families can afford.
This juxtaposition highlights the challenges middle-class families face at both ends of the cost spectrum. In high-cost states, strong economies and higher incomes aren’t always enough to make up for rising prices, while in lower-cost states, incomes often fail to provide the financial stability families need to get ahead.
This analysis was performed by Upgraded Points, a company that provides advice on credit cards rewards programs and other financial products, using data from the Economic Policy Institute and the U.S. Census Bureau. For complete results covering more than 200 metros and all 50 states, see the original version: Where in the U.S. Does a Middle-Class Income Stretch the Furthest?
Methodology
Photo Credit: NDAB Creativity / Shutterstock
This analysis utilized data from the Economic Policy Institute’s Family Budget Calculator and the U.S. Census Bureau’s 2023 American Community Survey Public Use Microdata Sample 1-Year Estimates. The goal was to determine where in the U.S. a middle-class income stretches the furthest. Researchers at Upgraded Points calculated the available income after necessities for each location. This metric represents the difference between the median family income and the income required to cover essential expenses.
To ensure consistency, the analysis focused exclusively on single-family households with 2 adults and 2 children. As a result, the median family income reflects only these households, and the cost of necessities corresponds to the expenses required to maintain a modest yet adequate standard of living for this specific family composition. Essential expenses included in this calculation cover housing, food, childcare, transportation, healthcare, other necessities, and taxes.
Data at the county level was aggregated to metropolitan areas and states using population-weighted averages to provide regional comparisons. Metropolitan areas with inconsistent mappings between datasets or large margins of error were excluded to preserve data accuracy. All monetary values are reported in 2023 dollars.
For complete results, see Where in the U.S. Does a Middle-Class Income Stretch the Furthest? on Upgraded Points.
Eric Kolenich (804) 649-6109
Sean Jones (804) 649-6911
Eric Kolenich
Growth and Development Reporter
Sean Jones
Henrico and Hanover Counties Reporter
