Fixing Henrico County’s housing crisis

Thinking about buying your dream home in Henrico County? Brace yourself for sticker shock because houses are wildly expensive here, with an average price of nearly half a million dollars. Housing inequality is a national crisis that hits close to home. It’s a complicated, systemic issue, but not an insurmountable problem and the Henrico County Board of Supervisors has begun tackling it.

Three Chopt Supervisor Misty D. Roundtree hosted a Three Chopt Chats forum about the lack of affordable homes in Henrico County. Victoria Davis, Department of Public Relations, opened the forum by speaking about housing barriers in Three Chopt, where home prices are “three times more expensive” than other county areas. She noted how difficult it’s been for her adult children to buy a home nearby despite being gainfully employed.

How did we get here?

The core crisis is one of limited supply and rising costs.

Housing is considered affordable if an individual or family spends no more than 30% of their gross monthly income on housing. Unfortunately, “the income needed to afford a home in Virginia increased by 76% between 2020 and 2024.” – Eric Leabough, Director of Community Revitalization.

Creating affordable housing is a challenge because there has been a persistent and pervasive supply and demand problem in housing dating back decades. All the while, housing costs have outpaced income growth due to:

• significant increases in inflation and interest rates
• lack of skilled construction workers
• legal challenges that delay zoning approvals.

The current housing deficit means our region only has a month’s supply of available housing. In 2024, only 1,800 new residential lots were approved across five counties—and they won’t be built out for another seven to eight years. Competition for limited resources drives up prices.

State senator Schuyler VanValkenburg (D SD16) shared some shocking statistics to illustrate Virginia’s housing inequality:

• Three of the ten cities nationally with the highest rent increase are in Virginia, including Richmond.
• In the last five years, the median home price increased over 50% in 92 of Virginia’s 133 counties, including Henrico (52%).

Changing views on affordable housing

Housing equality and affordable housing have historically been unpopular in well-established communities due to a combination of factors, including NIMBYism (Not In My Backyard), concerns about property values, and anxieties about potential social or economic changes.  But in fact, high housing prices can slow down a local economy, leaving jobs unfilled and less spending power in a community.

When affordable housing is plentiful, more opportunities become available for people at all income levels. More money is available for spending in a community, and long-term change can begin to take root. Let’s take a look at some of the economic benefits of affordable housing.

What kind of solutions can end the affordable housing crisis here in Henrico?

Senator VanValkenburg emphasized the importance of Henrico being a “solution-oriented” county. Innovation, he said, is key to addressing the affordable housing crisis.

Henrico County has already taken meaningful steps to make homeownership more affordable.

• Sales begin under Henrico program to promote affordable homeownership describes the concrete results of the Henrico Affordable Housing Trust program launched in 2024 when the Board of Supervisors established the Henrico Affordable Housing Trust Fund with $60 million in previously undesignated tax revenues from the county’s data center industry. Funds from the trust are used to reduce the price that a qualifying buyer pays for the home.
• “The Helios,” a New Affordable Housing Development Coming to Henrico that will feature “rent-restricted, solar-powered apartments.”
• Henrico County also has programs to help with down payments and closing costs for first-time homebuyers.
• The county offers grants to for-profit and nonprofit residential developers to help offset costs, which in turn lower sale prices for buyers.
• One way to address the lack of construction workers is to tap into resources such as student-built homes through the Henrico County Public Schools’ Career Technical Education programming.
• The urban cost-share program through the Virginia Conservation Assistance Program benefits residential property suffering from erosion, poor drainage, or poor vegetation.
• Qualified seniors and/or disabled homeowners can seek real estate tax relief through the county’s Real Estate Advantage Program.

Reducing regulatory burdens to boost home development is another strategy to alleviate the housing crisis. In 2025, General Assembly Democrats like Senator VanValkenburg introduced legislation to “target housing supply goals and multifamily zoning” but fell short of their goals. They vowed to renew their efforts next year.

What can I do to help?

Housing equality means a healthy county, so if you’re a homeowner, don’t pull up the ladder behind you. Instead, support affordable housing for all residents with your voice, your time, and your votes. Affordable housing is a choice—a choice we can make together.

Henrico County probably won’t see the end of its affordable housing crisis anytime soon, but we’re making progress. By cultivating creative solutions, forging unique partnerships, and electing representatives who support affordable housing, we can get there!