Zoning Flexibility Could Help Tame Virginia's Soaring Housing Costs

Housing costs in Virginia have spiked in recent years: Rents have risen 25% just since the start of 2017, while home prices have increased even faster, putting homeownership out of reach for many middle-class families.

New data shows that 1 in 4 Virginia renters spend more than 50% of their income on rent. Virginia localities that added less than 1% to their housing stock from 2017 to 2022 have mostly seen rents rise faster than have those in the rest of the state. Meanwhile, the locality that added a greater share of housing than any other in Virginia during that time—Tysons—had the lowest rent growth across the state, with rents rising just 5% in the past seven years, or less than 1% per year.

With too few homes available, people compete for what’s on the market and bid up the price or rent. The families that can least afford the cost of housing lose out the most.

This same dynamic—less supply leading to higher prices and rents—has played out in the rest of the country as well. And the consequences are serious. Research has repeatedly found that housing costs are the leading cause of homelessness, and that jurisdictions adding housing at high rates, especially apartments, are able to hold down rent growth, while those allowing little new housing have seen costs rise rapidly. Virginia, with its housing stock falling short of families’ needs, illustrates the point: Homelessness has risen 13% in the commonwealth since 2018.

The roots of Virginia’s housing woes are clear: Restrictive zoning has prevented builders from constructing much-needed housing, especially condos or rental units in small and midsized apartment buildings in commercial areas and starter homes such as townhouses.

Restrictive zoning was originally adopted to keep communities segregated by race even after the U.S. Supreme Court struck down zoning that targeted non-White populations in 1917. And the problem persists. Recent research has found that restrictive zoning continues to segregate communities by race, with restrictions on apartment construction leading to lower rates of Black and Hispanic residents. But perpetuating racial segregation is not the only damage that can be linked to restrictive zoning. Onerous rules for building houses inside population centers have pushed people who prefer to live in a city or town farther out. This, in turn, leads to the clearing of forests and farmland for housing, and workers—who cannot afford to live where they are employed—commuting long distances. At the same time, extended families often cannot afford to live near each other.

Although localities in all states have extensive authority over zoning, some states have recently concluded that housing problems require statewide solutions. Nine states have passed bills ensuring that single-family property owners are allowed to rent out accessory dwelling units (ADUs) on their property, such as an apartment, converted basement, or garage—which have minimal impact on the look of a neighborhood—or a tiny home in a backyard, all of which usually rent for less than other housing.

California, Florida, and Montana have also passed laws with large bipartisan majorities to allow apartments on commercially zoned lots in their states. These laws are poised to meaningfully increase the supply of homes and improve affordability and walkability without altering single-family zoning, which allows only one house per lot. These are essentially state efforts to replicate the success already experienced by cities that have made it easy to build apartments near commerce, such as Minneapolis.

In the fall of 2023, The Pew Charitable Trusts conducted a nationally representative survey that found that these measures have support from renters and homeowners alike. For example, 72% of Americans support allowing ADUs and 75% support allowing more apartments in commercial areas. Americans favor such measures because they believe they will improve housing affordability, and the data from states and cities that have passed measures to allow more homes show they are right. As Virginia continues to struggle with housing affordability, outcomes from states and cities that have enacted zoning reforms illuminate a path to success.

This op-ed was first published in the Richmond Times-Dispatch on February 13, 2024.

Alex Horowitz is a director of The Pew Charitable Trusts’ housing policy initiative.