a blog by Chris Thompson, Director of Strategic Housing with Virginia Housing
Across Virginia, every community is grappling with the same critical issue: there is simply not enough affordable housing. This problem is affecting Virginians across the income spectrum. While our most vulnerable populations remain in need, moderate- and middle-income earners and essential workers, such as teachers, nurses and law enforcement, are also increasingly being priced out of their communities. But, how do we fix this problem?
At Virginia Housing, our mission is focused on helping Virginians attain quality, affordable housing. While receiving no state taxpayer dollars, Virginia Housing is self-sufficient, raising money in capital markets to provide mortgages to first-time homebuyers, below-market financing for multifamily rental housing and grants to support our housing partners undertaking community development and neighborhood revitalization efforts.
As we continue our work to tackle the housing challenges that exist across the Commonwealth, we know that collaboration, innovation and private-public partnerships are crucial to creating prosperous communities for all that call Virginia home.
Why is affordable housing a growing issue?
In large part, rising home prices are about supply. Prior to the 2008 recession, Virginia was permitting approximately 60,000 new units of housing for construction each year, and we still haven’t recovered to the pre-recession levels. Today, the state needs more than 200,000 units to keep up with current demand. As scarcity has increased, prices have followed: in 2021, the average price of a new home in Virginia was $369,000. Today, it’s $400,000.
Housing is also coming to the forefront because there is growing awareness of its impact on economic development. While in the past, businesses looking to relocate or expand have wanted to know about a locality’s talent pool, today’s employers are asking “where can my workforce afford to live?”
What do housing organizations need?
Whether providing housing-related services or building homes, most organizations need more resources, and the more flexible, the better. For those focusing on increasing the affordable housing supply, no housing development project gets done with just one source of funding. Organizations need support in land acquisition, construction funding and gap financing. It can also be a struggle to cover operational costs, as well as program and service delivery expenses. Across the board, there is a growing need to think creatively about how to pool funding from multiple sources to make the projects a reality.
How can funders support housing efforts?
Funders are in a great position to champion housing efforts because they have close relationships with the places where they live and work, and they have resources to support what’s happening around them. There are housing organizations in every community, from housing authorities to nonprofits, and they are always looking for ways to create more partnerships and increase resources for housing projects. To get involved with housing, the first step is to reach out to housing-focused organizations in your community, and start a conversation about what they need and how philanthropy can help.
How can Virginia Housing support funders?
If your organization is directly supporting a housing-related effort, it’s possible that Virginia Housing can provide you with support. Beyond providing direct assistance to housing organizations, Virginia Housing and funders can collaborate by connecting each other with efforts that need support. Whether we connect an interested funder with a partner needing additional assistance or a funder sees a project or organization that could benefit from Virginia Housing resources, we welcome the partnership and collaborative spirit. Please get in touch to share your story, and let’s talk about how we can work together.
What is the outlook for affordable housing in Virginia?
The good news in the housing community is that the topic is garnering more attention and support. Housing is now a top priority with local officials and policymakers across the aisle, as it has now become a kitchen table topic for Virginia households, regardless of income level. Housing is the fundamental thread that runs through every facet of life in Virginia, including economic development, health care, education and more. It’s important that we continue to build on this momentum and expand our network with new partners to come up with viable solutions. The more voices, the better our chances of success.
As we look toward the future, there is a lot of uncertainty, but what we at Virginia Housing are certain of is that we remain a steadfast, mission-driven partner to support the affordability and attainability of housing for all. We’ve been here for over 50 years, and we’ll continue to be here to stand with you in the future.
To learn more about Virginia Housing and how we can work with your organization, contact Chris.Thompson@VirginiaHousing.com or visit VirginiaHousing.com.