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Northern Virginia’s economy continues to gain ground, but soaring housing costs and mounting pressure on the power grid could weaken the region’s ability to compete, according to a new economic progress report.

The Northern Virginia Chamber of Commerce released its 2026 NOVA Roadmap Progress Report earlier this week, outlining both the region’s strengths and the obstacles that could hinder future growth.

Technology remains a major economic driver, particularly the expanding data center industry. But the report identifies housing affordability, energy infrastructure and workforce retention as pressing concerns.

Local efforts have expanded affordable dwelling unit frameworks, and the chamber has partnered with Fairfax County to explore ways of encouraging more private housing production. Still, limited middle-income options and high housing costs are making it harder for the region to retain workers.

Clayton Medford, the chamber’s senior vice president of government relations, said business leaders are increasingly concerned that Northern Virginia’s high cost of living could push talented workers to seek opportunities elsewhere.

The chamber has also hosted discussions about employer-led efforts to increase the housing supply. Medford said the region’s mission-driven employment and world-class educational opportunities continue to attract talent, but Northern Virginia must address living costs to compete with similar metropolitan areas nationwide.

The report also calls for more investment in transportation, power generation and the electric grid as the digital economy expands. Those upgrades are especially important for meeting growing data center demand.

Medford urged policymakers and energy providers to accelerate work that improves grid reliability, resilience and capacity. Without timely upgrades, he said, Northern Virginia risks losing growth in a sector that has played a central role in its economic success for at least a decade.