Virginia’s housing crisis warrants attention, action

Over the last few years we’ve been inundated with difficult news and challenging times. From frustrating school closures caused by the pandemic to our ongoing struggles with soaring inflation and gas prices, Virginians can’t seem to catch a break.

With everything going on, it can be hard to keep track of what today’s priorities ought to be, but we can’t lose sight of our region’s strained housing situation.

Anyone who has lived in this region the past few years knows what I mean by “strained housing situation.” Amid rampant inflation — which is connected to rising housing prices — and a pandemic that has upended our economy, housing inventory in Virginia is down nearly 44% in the last two years, contributing to the 12.5% increase in rent prices statewide last year. The commonwealth needs nearly 200,000 more units of affordable housing to meet demand. About 30% of that need is here in northern Virginia. It has become apparent that the crisis of housing affordability we face across northern Virginia requires creative and immediate solutions that don’t rely on federal funding.

These housing problems aren’t unique to northern Virginia; they’re an issue across the commonwealth. More than 900,000 households statewide are “cost-burdened,” meaning they spend more than 30% of their income on housing. Shockingly, our region has the highest rate of cost-burdened low-income households in the country at nearly two-thirds (59%). Many of these families face eviction as pandemic protections expire.

While new development helps ensure the commonwealth remains one of the best places in America to do business, we need to make sure that the situation for Virginians already living and working here doesn’t become worse. We should focus on building the tens of thousands of affordable housing units the region needs. We should look at ways to lower costs for renters while protecting landlords and increasing equity in the rental market.

Zillow’s 2021 Consumer Housing Trends Report found that renting is more expensive for people of color at all stages of the renting experience — from applying through moving out. Early in the process, renters of color pay significantly more in upfront move-in costs, including application fees and security deposits. According to the report, white renters pay a median cash security deposit of $600, while Black renters pay $700 and Asian American renters pay $1,000. In a time where the average American has less than $400 saved for emergencies, it’s tough for many Virginians to imagine forking over $1,000 or more simply to move into a new apartment.

One approach that’s worked in Virginia and throughout the country is landlords offering security deposit insurance pioneered by companies like Rhino. In 2020, I sponsored and passed a bill to make it easier for renters to access this innovative option, making more than $870 million sitting in security deposits accessible, according to estimates from the National Multifamily Housing Council, and giving more Virginia renters the choice to pay a small monthly premium to replace the burdensome, upfront cash deposit and move into a new home for less. This is a meaningful step to make our state a better, more equitable home for current and future Virginians.

While I am heartened by the rapid growth I see in my district and across Virginia, I am still deeply troubled by many things I see. Gas prices are rising to unseen heights; rent is going up for working families; parents are facing tough decisions about how to afford groceries for themselves and their children; and inflation doesn’t seem to be slowing down any time soon. While we should encourage new growth and development, it should not come at the expense of the people who call northern Virginia home.