Homeownership Far Out Of Reach For Most In Fairfax County: Report

FAIRFAX COUNTY, VA – A new report commissioned by the Fairfax County government paints a dire picture of homeownership prospects for many county residents.

According to the report, high interest rates, stagnant wages, a lack of housing supply and skyrocketing home prices are compounding to push the possibility of homeownership out of reach for all but the top earners in the county.

To afford a house at the county’s median home sale price of $770,000, a family of four would need to be earning at least $230,000 annually. However, the median annual income of Fairfax renters is about $100,000.

According to U.S. Census data, 35 percent of households in the county earn more than $200,000 a year, meaning likely 70 percent or more of county residents can’t afford most homes in their county.

Put another way, the county finds that the difference between the county's median home value and the maximum price a renter household can afford was more than 3 times higher in 2023 than it was in 2010. In 2010, there was a $75,700 gap between typical home values and what renters can afford. By 2023, that gap was nearly $322,000.

The county also finds that it is not building nearly enough homes. While building boomed in the 1970s and 80s, but the rate of construction fell by half between the 80s and 90s, and by half again after 2009.

The county has created jobs by the tens of thousands, but it has only produced less than half the number of homes those workers will need. The county assesses that it will need to double housing production to keep up, lest residents end up cost burdened, or driven from the county.

The county has recently been streamlining permitting processes and lowered income thresholds for some housing programs to alleviate stress on lower earners.