Richmond is issuing fewer housing permits in 2024
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Richmond metro is on track to permit fewer housing units this year than it did in 2023 — in line with a nationwide trend, according to U.S. Census Bureau data.
Why it matters: That's a problem for people facing steep housing prices. Experts estimate the U.S. is short over 3 million units of housing, either to rent or to buy.
- And it's especially noteworthy in Richmond, the fastest growing region of the state.
Zoom in: The Richmond area is projected to permit 7,816 new units this year, compared to nearly 9,976 in 2023.
- That means a projected 57.9 new units permitted per 10,000 residents, down from 73.9 in 2023 — a 22% decrease in total new units permitted per capita.
Yes, but: The region, and the city specifically, has been focused on adding density and multiple units over single-family houses.
- Last year, 52% of all new housing building permits were for buildings with five or more units. Single-family wasn't far behind though; those were 46% of all permits.
Zoom out: Higher interest rates for loans are slowing new home and apartment construction, according to the National Association of Home Builders.
- Labor and lot shortages are also weighing on builders, per the group's latest survey.
What we're watching: With the peak of the construction wave behind us, per an analysis from real estate services firm Cushman & Wakefield, landlords could raise rents.