(Clockwise from top left) Greta Harris, John S. Finn Jr., Ryan Price, Craig Toalson, Vernon McClure, Eric Leabough
Greta Harris
Most of our regional community is thriving, but not everyone. We have a growing number of fixed-income seniors, members of historically marginalized segments of our society that are seeking opportunity access, new immigrant families and even recent college graduates who are all struggling to find quality, affordable housing within the Richmond region. There are many ways our elected leaders can help.
- At the federal level, expand the Low-Income Housing Tax Credit program, the most impactful program to produce and preserve housing that is affordable to working families and seniors.
- At the federal level, expand the Housing Voucher program.
- Vouchers help our most vulnerable neighbors have better access to housing options by allowing them to pay up to 30% of whatever their income may be; HUD subsidizes the balance.
- At the state level, tangibly larger investments need to be made into the housing continuum. There are other states, and even cities, that are investing hundreds of millions of dollars annually into various housing trust funds to support the preservation and production of quality, affordable housing options.
- At the state level, enact an inclusionary zoning policy that would mandate private-sector participation in the creation of quality housing at an affordable price.
- At the local level, comprehensive zoning changes are needed to create by-right rental developments or higher-density home ownership developments.
- At the local and regional levels, funding gap resources are anemic. Since 2020 the cost to deliver a quality unit of affordable housing has increased by nearly 60%. Local jurisdictions could leverage their borrowing capacities to issue regional bonds for affordable housing, supporting both private and nonprofit developers.
John S. Finn Jr.
Senior managing broker, United Real Estate Richmond
Encouraging streamlined processes for construction permits and incentivizing developers to build more affordable housing units can assist in alleviating this issue. Moreover, the region's implementation of policies conducive to economic growth and enhanced wages can progressively reduce the disparity between income levels and housing expenses.
Also, bolstering community-driven initiatives, such as micro-housing, co-housing or community land trusts, can provide more affordable options for buyers. There is a part for everyone to play. These efforts, while gradual, can foster a more sustainable and equitable housing market.
Ryan Price
Chief economist, Virginia Realtors
We need more housing, and not just quantity, but variety in the size and type of housing, which can create a wider range of price points in the market and more options for Virginians at different stages in their lives. This can be accomplished over the long term through community planning; specifically, updating area comprehensive plans and changing zoning codes to allow for more housing and greater variety in the housing stock.
Eric Leabough
Director of community revitalization for Henrico County
There are no silver bullets in solving the housing challenges we are facing as a country, state and region. Some potential strategies are as follows:
- Increased partnerships between the for-profit and nonprofit development communities to bring units online at a faster pace and a larger scale. This will likely require incentives from federal, state and local government partners.
- Donation of federal, state and locally owned land for affordable housing development. Under the current community land trust model, the housing created is made perpetually affordable.
- Large and small employers should make an investment in affordable housing. Henrico launched a homebuyer downpayment and closing cost assistance program for county employees in December 2023.
- Structured and transparent regulatory processes. Henrico updated its zoning and subdivision ordinances in 2021.
- The state could leverage its ability to make affordable and workforce housing development projects feasible by allowing affordable housing developers to borrow at lower interest rates.
- The state could provide flexible gap financing in addition to what local government and other partners can bring to the table.
- Creating additional housing options for seniors and older adults that include universal design features (i.e., more accessible).
- Preservation of existing housing stock.
- Equitable distribution of housing options across the state and region.
Vernon McClure
Founder of Main Street Homes
The scarcity of new lots for homes is increasing lot prices faster than inflation. Many new lots are approaching the $180,000 to $200,000 range, versus $120,000 a couple years ago. Putting that cost into a new home increases the final price to between $700,000 and $1 million.
The scarcity of lots is mainly affected by the lack of zoned lots available. Many localities are not receptive to new zoning. They don’t understand the positive economics of new homes and how they increase property values in the area, including new commercial construction.
Craig Toalson
CEO, Home Builders Association of Virginia
We’ve been underbuilt for over a decade. During the 2010s, half the number of homes were built in Virginia than any prior decade in recent history. We built roughly 200,000 (20,000 per year). If you compare that to the ‘80s, ‘90s and 2000s, we were building 400,000 homes per year in Virginia. When your population is growing, you can’t build half the number of homes over a 10-year span and not expect to have a supply and demand problem.
One of the largest hurdles to adding to our housing inventory is effectively communicating who needs the new homes and apartments that are being built. Data shows that 70% of all new homebuyers and apartment renters move within the Richmond area, which means the homes we build are for current greater Richmond area residents. These are move-up buyers. They are our kids, who grew up in the Richmond area and loved it so much that they want to stay here. They are our empty nesters and active adults, who desire to downsize.
