Building Permits & Housing: Trends, Delays & Impacts

Virginia sees slowdown in building permits as national housing shortage persists

Published on Feb. 23, 2026

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Recent data indicates a slowdown in building permit issuance in Virginia, mirroring concerns voiced nationally about the complexities and delays inherent in the permitting process. While the situation in Virginia offers a snapshot of broader trends, local authorities, such as those in Portsmouth, Ohio, are working to streamline processes and encourage investment in their communities.

Why it matters

The slowdown in permitting is occurring against a backdrop of existing housing shortages, putting upward pressure on housing prices and limiting options for prospective buyers. Understanding the permit pipeline is crucial for real estate professionals, providing valuable insights into future housing supply.

The details

In Virginia, the number of building permits issued throughout 2025 declined by 836 from the previous year, marking the lowest number since 2020. Builders nationwide have raised concerns about the permitting process, which can significantly slow down new construction and increase development costs. Delays at this early stage have a ripple effect, impacting housing affordability and exacerbating existing supply shortages.

  • In January 2026, Virginia's months of housing supply stood at 2.17, a slight increase from 2.05 months the previous year, but still significantly below the 5-6 months considered a balanced market.
  • Nationally, the supply of existing homes was 3.7 months in January 2026, up from 3.5 months a year earlier and in December 2025.

The players

Virginia REALTORS®

A real estate industry organization that continues to monitor housing market trends and advocate for policies that support increased housing supply and affordability.

City of Portsmouth, Ohio

A local government that emphasizes its commitment to assisting builders throughout the entire project lifecycle, from zoning to completion, and occupancy.

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What’s next

Virginia REALTORS® released key takeaways from the January 2026 home sales report, further emphasizing the ongoing challenges in the housing market. The organization continues to monitor these trends and advocate for policies that support increased housing supply and affordability.

The takeaway

The situation in Portsmouth, Ohio, illustrates the multifaceted nature of the building permit process, where local regulations, particularly those related to historic preservation, can add time and complexity. This underscores the need for clear communication and collaboration between builders, local authorities, and community stakeholders to address the national housing shortage and improve housing affordability.