RICHMOND, Va. (WRIC) – Federal data shows that new home construction is now at its lowest level since September 2021.
The lack of affordable homes is prompting more people to live in apartments, which is driving up rent prices.
In Richmond, rent.com is reporting the price to rent a one-bedroom apartment has increased 35.69% from last year.
The website said Richmond is one of several cities that has experienced the biggest increase in the one-bedroom rent price year-over-year.
The Commerce Department also reports that single-family housing construction dropped by a little over 8%.
Of those single-family homes, real estate brokerage Redfin reports the average price has increased 11% from last year. The average price for a home in the U.S. is now more than $430,000.
The chief economist at Virginia Realtors reports the shortage of construction materials and labor could continue this year, driving down the number of new homes being built.
