RICHMOND, VA (AUGUST 6, 2026) – Virginia localities issued permits for 11,137 new homes during the second quarter of 2026, driven largely by a rebound in multifamily construction, according to the latest U.S. Census Bureau data compiled by the Home Builders Association of Virginia (HBAV).
- Overall permitting increased 37.1% from the second quarter of 2025.
- Builders pulled 5,767 single-family permits, up 9.8% compared with the second quarter of 2025
- Builders secured 5,370 multifamily permits, up 87.2% year over year
“The second quarter data show that builders continue responding to Virginia’s housing needs despite a challenging environment,” said Craig Toalson, CEO of the Home Builders Association of Virginia (HBAV). “Growth in both single-family and multifamily permitting is encouraging because it reflects continued investment in expanding housing opportunities across the Commonwealth. While affordability and construction costs remain significant challenges, these numbers demonstrate that demand for housing remains strong.”
Year-to-date, Virginia localities have issued permits for 21,184 new homes through the first six months of 2026, a 20.4% increase compared with the same period last year. Single-family permitting has remained relatively stable, declining 0.9%, while multifamily permitting increased 53.4%.
For permitting purposes, multifamily housing includes structures with two or more units.
The latest edition of HBAV’s Virginia Housing Trends Brief examines permitting activity, housing starts, home sales, mortgage rates and builder confidence across the Commonwealth.
Nationally, builder confidence remains subdued. The NAHB/Wells Fargo Housing Market Index fell to 34 in July, marking the 15th consecutive month the index has remained below 40, the longest such stretch since 2012. On a scale of 100, readings below 50 indicate more builders view market conditions as poor than good. Builders continue to cite elevated mortgage rates, rising material prices, high land costs and affordability challenges as the primary obstacles to new home construction. The July survey also found that 37% of builders cut home prices, while nearly two-thirds continued offering buyer incentives.
Additional Takeaways for Virginia:
- Housing starts: While permitting measures future construction activity, housing starts track when construction actually begins. According to the National Association of Home Builders’ housing forecast released in May, Virginia is projected to record approximately 30,500 housing starts in 2026, a modest decline from 2025 before returning to growth in 2027. The outlook suggests builders remain measured as they balance housing demand with higher financing and construction costs.
- Home sales and prices: Virginia’s housing market remained resilient through June. According to Virginia REALTORS®, there were 11,598 closed sales statewide, up 7.6% from June 2025, while year-to-date sales are running 5.5% ahead of last year. The statewide median sales price reached $460,000, an increase of 3.1%, and active listings climbed 10.2%, providing buyers with more choices while continuing to support home price appreciation.
- Mortgage rates: According to Freddie Mac, the average 30-year fixed-rate mortgage remained in the mid-6% range through late spring and early summer. While rates are modestly lower than a year ago, they remain elevated enough to affect purchasing decisions, particularly for first-time buyers.
“Housing markets don’t move based on a single indicator,” Toalson said. “When you look at permitting, home sales, inventory and builder sentiment together, you see a market that is gradually finding its footing. Builders are continuing to invest, but long-term progress will depend on policies that allow more homes to be built, reduce unnecessary costs and improve affordability for Virginia families.”
Still, the cost of regulation also continues to shape the housing market. According to a recent National Association of Home Builders (NAHB) study, federal, state and local regulations account for an estimated $131,734, or 26.4%, of the price of a new single-family home nationwide, further underscoring the affordability challenges builders and homebuyers continue to face.
Although affordability continues to challenge both builders and buyers, the second-quarter data point to a market finding greater balance. Stronger permitting activity, improving inventory and steady home sales suggest demand remains resilient even as elevated borrowing costs temper the pace of construction. The increase in multifamily permitting reflects renewed investment in higher-density housing, though permitting activity can fluctuate from quarter to quarter as larger projects move through the local approval process. Together, the data suggest Virginia’s housing market continues to stabilize while builders work to meet demand across a range of housing types.
To see how these trends are playing out in specific metro areas, readers can explore the NAHB Metro Area Economic Dashboard.
Media Resources
VIDEO: Hear from HBAV CEO Craig Toalson as he discusses the latest permitting trends, key findings from the Virginia Housing Trends Brief and what they mean for housing across the Commonwealth.
About the Virginia Housing Trends Brief
Produced by the Home Builders Association of Virginia in partnership with the National Association of Home Builders (NAHB), the Virginia Housing Trends Brief offers a snapshot of the state’s housing market.
The update draws on trusted NAHB data — including builder sentiment, housing starts, permits, pricing, and mortgage activity — to highlight trends shaping single-family, multifamily, and remodeling activity across the Commonwealth.
About the Home Builders Association of Virginia
The Home Builders Association of Virginia (HBAV) was founded in 1956 to promote and protect the Virginia housing industry. HBAV is a member of the 3-in-1 Home Builders Association Federation that includes the National Association of Home Builders (NAHB) and 13 local Home Builders Associations in Virginia. Members join to support HBAV’s mission and their livelihood. To join, companies apply for membership at the local association level and in doing so, become members of HBAV and NAHB.
HBAV serves the entire home building, development, and remodeling industry. One-third of HBAV’s three members are home builders, multifamily builders, land developers, and/or remodelers, while the remaining two-thirds are professional businesses and trade partners that work closely in related fields such as financing and building products.
HBAV works to accomplish its mission through advocacy, industry news and education, and membership events such as the Virginia Builders Summit & Expo and the Virginia Housing Excellence Awards.
MEDIA CONTACT:
Daniel Carrigan, HBAV
[email protected]
(717) 201-6911