Abigail Spanberger is set to become Virginia’s first female governor, but she faces a housing market under significant strain. Affordability is a central challenge for her administration, fueled by rising home prices, increasing rents, and limited options for middle-income residents.
“No matter where I travel across Virginia, whether it’s Richmond City or rural communities, Roanoke, Radford, or Hampton Roads, I hear the same concern about the high cost of housing,” Spanberger said during a June 2025 event focused on affordability. “Whether Virginians are trying to buy a home or pay the rent, housing has become too expensive. We need to change that.”
Since 2019, median list prices statewide have increased more than 34%, according to data from Realtor.com. In the Richmond metro area, rents have increased by more than 25% over the same period, placing growing pressure on household budgets.
A State That Looks Affordable, Until You Run the Math
Compared with many states, Virginia still appears relatively affordable. Home prices sit close to the national median, and household incomes are higher than average. Joel Berner, senior economist at Realtor.com, notes that these factors have long given the Commonwealth an edge.
“Virginia has historically benefited from a combination of moderate home prices and solid incomes,” Berner said. “That’s helped keep it more accessible than many other states.”
But that advantage is narrowing quickly. Today, affording a median-priced home in Virginia requires an annual income of more than $100,000, assuming a 20% down payment and mortgage rates near 6%. For many essential workers, that threshold is unrealistic. Firefighters, teachers, and nurses often earn closer to $60,000 a year, underscoring the growing disconnect between wages and housing costs.
Spanberger has acknowledged the complexity of the problem.
“There is no one-size-fits-all solution to Virginia’s housing challenges,” she said. “But Virginians deserve practical, thoughtful policies that deliver results they can actually feel in their bank accounts.”
Flexibility at the Core of Spanberger’s Housing Strategy
At the heart of Spanberger’s housing platform is flexibility, giving local governments more authority to address housing shortages in ways that reflect local conditions rather than imposing rigid statewide mandates.
Financing is a major pillar of that approach. Spanberger has proposed expanding local bonding authority and increasing state investment in housing production, particularly for homes aimed at working families. The goal is to supplement slow and competitive federal programs with tools that allow communities to move more quickly.
Spanberger also wants to streamline the development process itself. Her plan calls for faster permitting, clearer redevelopment rules, and fewer procedural hurdles that can delay projects and inflate costs. The aim is not only to increase supply, but to make it financially feasible to build homes at attainable price points.
Preservation as Part of the Supply Solution
In addition to new construction, Spanberger’s platform emphasizes the preservation of existing affordable housing. Rather than treating preservation as a separate issue, her approach frames it as a critical supply strategy.
Manufactured housing plays a key role in that discussion. While manufactured homes account for about 5% of the national housing stock, they make up nearly 8% in the South Atlantic region, according to the National Association of Home Builders’ American Housing Survey. Supporters argue that targeted investments could protect and expand one of the state’s most affordable housing options.
Spanberger has also highlighted the importance of “missing middle” housing, duplexes, townhomes, cottage courts, and accessory dwelling units (ADUs). These housing types typically cost less than large single-family homes, but zoning rules still restrict or prohibit them in many parts of Virginia.
Where Virginia’s Housing Market Falls Out of Alignment
While housing debates often focus on how much is built, economists say Virginia’s deeper issue is alignment, specifically, whether new supply matches the price points where demand is strongest.
“Virginia is about average when it comes to the share of new construction in the market,” Berner explained. “The difference is that many of the new homes being built here are relatively expensive.”
That misalignment means new housing often fails to relieve pressure on middle- and lower-income buyers, even when inventory improves. As a result, affordability concerns persist despite increased construction activity.
Reforms That Could Deliver the Biggest Gains
Housing experts say Spanberger’s agenda could meaningfully improve affordability, but only if several reforms advance together.
Zoning changes top the list. Roughly three-quarters of Virginia’s land is governed by zoning rules that limit density or restrict housing types, slowing development and raising costs. More permissive zoning, paired with faster permitting, could unlock significant new supply.
“Multifamily housing is prohibited in much of the state, and ADUs are banned in roughly a third of it,” Berner said. “Those restrictions prevent builders from delivering the housing formats that are often more affordable.”
Spanberger has proposed opening the door to those missing housing types, including duplexes, townhomes, and ADUs, in areas where they are currently illegal. Advocates argue that incremental density can add supply without dramatically changing neighborhood character.
Building Smaller, and Protecting Existing Affordability
Another clear opportunity, economists say, lies in building smaller homes. Spanberger has proposed incentives to encourage starter homes, smaller lots, and compact designs that lower per-unit costs.
Manufactured housing fits squarely into that strategy. According to the Manufactured Housing Institute, the average cost of a new manufactured home, excluding land, is about $124,000, compared with more than $400,000 to build a traditional site-built home. That price gap represents a significant affordability advantage if paired with supportive policies.
At the same time, protecting existing affordable housing remains essential. Since 2017, the number of Virginians experiencing homelessness has increased by 11%, according to the National Alliance to End Homelessness, driven in part by the loss of low-cost housing options.
Spanberger’s plan includes measures such as granting local governments a transferable right of first refusal to acquire expiring tax-credit properties and expanding support for community land trusts. Without such safeguards, housing advocates warn that rising costs could continue to displace longtime residents even as new units are added.
A Systems-Based Approach to Affordability
The reforms most likely to reshape Virginia’s housing market are not about boosting construction numbers alone. They focus on fixing the systems that determine what gets built, where it gets built, and who can afford it.
Spanberger enters office with strong public awareness of the housing crisis and a platform aimed at aligning policy with market realities.
If successful, the payoff would extend beyond more housing units to a more balanced, accessible housing market for Virginians across income levels.
