The real estate market in Williamsburg, Virginia, has seen an uptick in its year-over-year median home price since 2024.
As of the first quarter of 2025, the median home price has climbed to over $430,000, reflecting a 14% increase from the previous year.
Even though the market is considered very competitive, with homes selling faster than they used to, it's quite balanced.
For instance, the median days homes stay on the market dropped from 26 to 9 days. However, fewer homes were sold within the same period. On average, homes sell for about 2% below the list price, while the most sought-after properties can go pending in just 10 days and sell at the list price.
With these trends, the market is good for buyers or investors, and now is an excellent time to consider buying real estate in Williamsburg.
So, for the best neighborhoods in Williamsburg, VA, to kick start your real estate portfolio, here are your top five picks.
Kingsmill
The question of 'Is Williamsburg, VA a good place to live?' is answered by Kingsmill.
Like most Williamsburg neighborhoods, Kingsmill combines luxury living with resort-style amenities. But this is not all that crowns Kingsmill with its best neighborhood title—as far as real estate is concerned.
Kingsmill's location along the James River is a significant advantage for those who want an environment catering to their water activities and waterfront home needs.
Residents can access the renowned Kingsmill Resort, which features golf courses, a spa, and tennis courts. Even access to a marina and private security is also an added advantage, making this gated community highly sought after, with over 100 homes sold yearly.
Pro Tip: If you are relocating to this area, any reputable moving company in Williamsburg, VA, can make your transition smooth.
Nearby Schools and Amenities:
Ford's Colony
Whether you think of Ford's Colony as one of the best retirement communities in Williamsburg, VA, or simply a historical community, the neighborhood ranks high among the most sought-after areas in Williamsburg.
It's a gated master-planned community. Ford's Colony has popular three-championship golf courses, over 60 clubs and activities, and diverse home styles and architecture.
These homes cater to various budgets. For instance, you can get homes for as low as $180,000 and as high as over $1 million—a fair range of options.
Plus, its strong sense of community and beautiful surroundings make it highly desirable.
You could also say the active homeowner's association contributes to making it one of the best neighborhoods in Williamsburg, VA. They frequently organize events like Colony Auto Enthusiasts and Photography Enthusiasts.
Nearby Schools and Amenities:
Colonial Heritage
Yet another neighborhood that thrives in the active adult lifestyle department, Colonial Heritage has homes and public spaces with pieces of history. But it also catches up with modern living.
Social events, art workshops, and live music nights are commonplace here. Colonial Heritage may not have sold as many homes as Kingsmill and Ford's Colony, but it's also a highly desired neighborhood
As Williamsburg's premier 55+ community, Colonial Heritage offers elegant homes, a championship golf course, and a clubhouse. This is one of Williamsburg's neighborhoods that provides a perfect blend of relaxation and an active lifestyle.
It's not surprising that the homes here record fast sales, with the median days on the market set at approximately 15. There is also a steady demand, driving prices up 8% YoY.
Essentially, buying real estate here is great for long-term investment.
Nearby Schools and Amenities:
New Town
Compared to the other luxury neighborhoods of Williamsburg, New Town is a mixed-use community and a relatively modern neighborhood.
…but this doesn't mean you can't find luxury condos, modern townhouses, and single-family houses.
New Town blends residential, retail, and entertainment spaces. Also, with Sullivan Square Park, you will never want for recreational activities or outdoor outings.
The streets are walkable, and the restaurants are trendy, making it a great option for young professionals and families. Plus, the walkable downtown with shops, restaurants, and events contributes to the strong rental market here.
Fueled by the proximity to the College of William & Mary, rent prices soar as students and professionals seek homes. For that single reason, real estate appreciates fast here, making it one of the best neighborhoods in Williamsburg, VA, to invest in.
Home values have been up by almost 9% YoY.
Nearby Schools and Amenities:
Stonehouse
Offering a mix of modern homes and nature-oriented living spaces, Stonehouse's pride is in its highly rated schools, including Stonehouse Elementary and Toano Middle Schools.
However, it's not all study here, you'll find fine recreational activities. For instance, there are golf courses, walking trails, and a strong sense of community, essential for the social events hosted here.
Above all, Stonehouse is a quiet neighborhood. It's greatly valued by those looking for a peaceful yet amenity-rich neighborhood.
Another thing that exalts Stonehouse as one of the best neighborhoods in Williamsburg, VA, is its larger lots: Many homes sit on half-acre properties, offering privacy.
The strong demand for Stonehouse homes by families accounts for its steady growth. Its home prices are up by almost 7% year-over-year.
Nearby Schools and Amenities:
Conclusion: More Bang for your Buck in Williamsburg
From historic to modern, any of the best neighborhoods in Williamsburg, VA, featured in this list, gives a good ROI or will be a great place to call home.
Whether it's the waterfront luxury of Kingsmill, the golf and social perks of Ford's Colony, the active adult lifestyle in Colonial Heritage, the urban charm of New Town, or the spacious, family-friendly vibe of Stonehouse, there's a neighborhood to match your lifestyle and needs.
With home values on the rise and properties selling fast, now is a great time to invest in Williamsburg real estate. You will be sure to find what you are looking for.
