(The Center Square) – Growth in Virginia’s housing supply continued slowing between 2024 and 2025 even as the population kept increasing.
The statewide housing growth rate fell to 0.3% between 2024 and 2025, according to U.S. Census Bureau estimates reviewed by the Virginia Public Access Project.
Loudoun County recorded a 2.1% housing growth rate during the period. Henrico County and Spotsylvania County each posted 1.1% growth, while Prince William County recorded 0.7%.
Most new development remained concentrated around Northern Virginia, the Richmond region and Interstate 95 corridors. Many rural localities across Southside and Southwest Virginia had slower or limited growth during the same period.
Housing construction accelerated during the pandemic-era building surge before slowing down in recent years as higher mortgage rates and rising construction costs weighed on homebuilding nationally.
Virginia’s population increased from 8.64 million in 2021 to 8.88 million in 2025, according to the Joint Legislative Audit and Review Commission.
While housing supply growth has slowed, demand in the existing home market has remained strong. Virginia REALTORS reported the statewide median home sales price reached $425,000 in March, up 1.7% from a year earlier, while active listings increased 6.3% statewide. Mortgage rates remained above 6%.
Earlier this year, Democratic Gov. Abigail Spanberger signed Executive Order 3 directing state agencies to review permitting processes, development regulations and other barriers connected to housing construction.
The order stated Virginia faces a shortage of nearly 300,000 affordable rental homes statewide and said housing costs have continued rising faster than incomes.
Lawmakers also approved several housing-related measures during the 2026 session, including bills creating small-lot residential zoning requirements; reducing some parking minimums near residential developments; allowing localities to waive certain water and sewer connection fees tied to affordable housing; and creating a mixed-income housing loan pilot program.
Several housing-related proposals were continued to 2027, including House Bill 447 involving who can challenge local land-use decisions in court; House Bill 197 involving how zoning appeals move through the court system; and House Bill 143 involving the use of surplus public property for affordable and middle-income housing.
