The cost of household necessities in Virginia rose faster than inflation for more than 15 years, leaving many households vulnerable to the growing affordability crisis, according to new data from United For ALICE, in partnership with United Way of Virginia.

The latest State of ALICE report for Virginia includes data from the ALICE Essentials Index, which tracks the rising costs of six basics families need to live and work: housing, child care, food, transportation, health care and technology. Between 2007 and 2024, the ALICE Essentials Index for Virginia increased 77%, compared with 52% for the broader Consumer Price Index (CPI), which reports inflation across more than 200 categories of goods and services.

The report highlights the growing financial strains on the demographic known as ALICE® (Asset Limited, Income Constrained, Employed). With income above the Federal Poverty Level but unable to afford basic expenses, 935,739 Virginia households were ALICE in 2024. When combined with households in poverty, 38% of all households in Virginia fell below the ALICE Threshold of Financial Survival.

“Behind these numbers are families making impossible choices every day — between groceries and utilities, child care and rent,” said United Way of Virginia Executive Director, Sarah Walsh. “The ALICE data helps guide our work with partners across Virginia, so we can respond to immediate needs and help build stronger paths to stability.”

The crux of the struggle for ALICE families is the gap between wages and expenses. In 2024, a family of four in Virginia needed $98,292 just to cover the essentials — more than three times the Federal Poverty Level of $31,200. Yet even with both parents working full time in two of the state’s most common jobs — a cook and a teller — this family’s combined income still fell short of the cost of basics by $32,300.

The State of ALICE in Virginia also reveals that in 2024:

• Virginia ranked 18th in financial hardship among all 50 states plus D.C.
• ALICE households were found in every major industry statewide, with the highest levels of hardship in food service and accommodation (41%), and retail trade (33%).
• The number of ALICE households has held steady since 2010.
• Minimum-wage workers in Virginia saw no increase to their hourly pay of $12.00. That wage was not enough to support the ALICE Household Survival Budget in Virginia.

“The ALICE research shows that the affordability crisis is not new,” said Stephanie Hoopes, Ph.D., National Director at United For ALICE. “Already stretched thin, ALICE families have no cushion for rising gas or utility costs — forcing tough tradeoffs with other necessities. That’s the insight policymakers and community leaders need to build a stronger future for ALICE and all.”