Appendix Report 5: Virginia Housing Production Affordability Findings

Abstract

Housing production is a contributing factor to national, regional and local economies, while market characteristics can often make it difficult to produce an affordable new home. This report presents findings from analysis of data that explain economic factors and drivers in the production of new housing, considering many sides of the industry. Focusing only on these drivers would exclude much of the risk unique to the housing industry, though, so this work also focuses on other characteristics of the construction industry broadly and then residential construction within it. The report discusses broad trends that provide context for residential construction. It discusses the state of housing production and the Virginia construction sector’s supply. The report also includes and analysis of development and construction costs such as fees, taxes possible regulatory requirements, direct land preparation and construction costs and other possible costs of doing business.