by Tyneshia Griffin, Environmental Policy Analyst

Virginia Housing Cost Crisis

Since 2020, average rents in Virginia have skyrocketed over 19% and continue to rise drastically across the state. A working-class family of three in North Chesterfield who paid $1,500 in rent in 2020 saw their rate increase by $285 annually by 2025. 

This isn’t just about numbers - it's about people. Virginia’s rent hike crisis is an issue of racial injustice and disproportionately impacts communities of color. A large percentage of renters are part of marginalized racial groups when compared to the percentage of white households that rent their homes.

More Than Just Rent: The Energy Cost Squeeze

But rent isn’t the only financial pressure. Costly energy bills are impacting housing affordability. 

Renters are seeing increasingly large amounts of their annual earnings going towards energy costs. In Richmond, some residents pay upwards of 10% of their annual income towards energy bills, a rate that is considered severe energy unaffordability. On top of regular payments, Dominion Energy requires unaffordable upfront deposits for enrollment into utility debt repayment plans. To put this into perspective, imagine paying a quarter of what you already can’t afford, just for the privilege of slowly paying off the rest. It’s like being asked to climb out of a financial hole by first digging deeper.

Energy affordability varies along the lines of housing type, race, and ethnicity. Economic and racial gaps in energy affordability stem from egregious bill hikes by electric utilities and various forms of housing discrimination including the legacy of racialized residential zoning, ongoing rent price gouging, and current housing supply development focused on upper-income earners. 

Because rental units are generally older, smaller, and less efficient, renters spend over 30% more per square foot on energy than homeowners. Manufactured home residents make up 3.7% of the total population, but 9.0% of residents at or below the 150% federal poverty level. Residents of manufactured homes simultaneously have an energy burden that is on average over 80% higher than site-built homes. 

Energy costs don’t impact all communities equally. The disparities are striking:

• Black households spend 43% more of their wages on household energy costs than white, non-hispanic households
• Latino/e households spend 20% more of their wages on household energy costs than white, non-hispanic households 

Energy Efficiency Retrofitting 

Energy efficiency retrofitting is the process of certified technicians modifying existing buildings to reduce energy demand and lower energy bill costs, including adding building insulation and upgrades to electrical systems and appliances. 

Increasing the amount of renters and manufactured home residents that receive energy efficiency retrofits in the state can reduce energy costs, and when combined with other housing stability measures such as anti-rent price gouging ordinances, can help stabilize annual housing expenses for working-class families.

Energy efficiency retrofitting is not just about saving money - it’s about:

• Improving the livability and affordability of rental units and manufactured homes 
• Lowering customers’ energy bills
• Maintaining comfortable temperatures in the home and improving quality of health
• Reducing exposure to respiratory health contaminants caused by poor indoor air quality 
• Reducing development of heat-and-cold related illnesses, increasing mental health benefits and productivity at work and school through stress reduction 
• Helping reduce the amount of climate-inducing air emissions from fossil fuel fired gas plants that bring power to residential communities
• Eliminating safety hazards with repairs to structural deficiencies in floors, roofs, electrical systems and more.

A Path Forward

The path to housing affordability in Virginia requires more than controlling rent increases alone. We must recognize that true housing costs include both rent and utilities—and that energy bills have become an unprecedented burden for working families. Energy efficiency retrofitting represents a practical and powerful step toward addressing this crisis.

When we upgrade homes with better insulation, modern appliances, and improved electrical systems, we're not just reducing energy consumption—we're investing in community stability. These improvements create a ripple effect: lower utility bills mean families can better afford their rent, reducing the risk of eviction and displacement. Better indoor air quality leads to fewer health problems and missed work days. More efficient homes mean reduced carbon emissions, protecting the communities that are often most vulnerable to climate change.

The tools for change are within our reach. Virginia has already identified over 150,000 homes that could benefit from energy efficiency improvements. What's needed now is the political will to expand these programs and ensure they reach the families who need them most. By combining energy efficiency initiatives with strong tenant protections, we can create a future where every Virginia family has access to housing that is both affordable and sustainable. This isn't just about saving money on utility bills—it's about building stronger, healthier, and more equitable communities for generations to come.