New home construction rose over 23 percent in Virginia between 2012 and 2013, according to building permit data collected by the Census Bureau and the Weldon Cooper Center. In suburban counties, the number of new homes built during the past year increased much more than in urban localities, but construction levels still remain a fraction of those seen during the early 2000s housing boom.
Homes Built Annually in the Mid Atlantic
Click on arrows at bottom of slideshow to scroll through years
During the past decade major changes in population growth patterns were evident in Virginia. In contrast to what happened in the early 2000s housing boom, when many counties on the edges of urban areas became some of the fastest growing in the country, when the boom ended, these same “exurban” counties declined in population. At the same time, after decades of stagnation and decline, urban centers began to grow again during the early 2000s.
One way to understand these dramatic changes in where Virginia’s population grew is to analyze home construction activity because it is often one of the most reliable indicators of population and economic change.
During the early 2000s, Virginia underwent a real estate boom that mirrored what was occurring nationally in the wake of broadening access to mortgages. In Virginia, home prices rose in many parts of the state during this time, but particularly in larger metro areas. In Fairfax County, for example, the median home sale price more than doubled from $220,000 in 2000 to $545,000 in 2005. Rising home prices forced many home buyers to move farther out from urban areas for affordable homes in the exurbs.
Change in the Number of Homes Constructed 2000 to 2005