Northern Virginia business owners are overwhelmingly optimistic about the region’s economy in the new year, but affordability has become a top concern for business leaders trying to attract new talent and new businesses to the region.

A survey of more than 100 CEOs, corporate executives and business owners conducted on behalf of the Northern Virginia Chamber of Commerce by marketing firm Pinkston, found 81% are very or somewhat optimistic about their company’s performance in the next six months and 49% plan to hire.

According to George Mason University’s Stephen S. Fuller Institute, 46% of the Washington region’s economy is driven by Northern Virginia. But it is neither inexpensive to do business in Northern Virginia nor to live in the region. Both are hard sells.

“The biggest concern that I hear on a consistent basis among all employers is the question of affordability. And affordability is housing, it’s also child care, it’s basic cost of living,” said Julie Coons, who has served as CEO of the Northern Virginia Chamber of Commerce since 2018.

“When I first got onboard, it was lack of skilled workers, which continues to be a challenge But it has now expanded into the driving factor around that for employers is affordability. It is a serious regional issue,” she said.

Northern Virginia companies can pull from a local pool of skilled workers to meet their growth needs, but the cost of living makes the region less attractive to professionals being recruited to the region and for companies looking to expand or relocate. In its survey, 27% of companies said it is more difficult to find qualified talent to hire now than it was a year ago, and 64% said it is about the same.

When asked about the new Trump administration, 46% of business leaders in Northern Virginia are hopeful for business-friendly changes, including extending tax cuts, reducing regulations, and transportation and infrastructure investment. But there are concerns about the new administration as well.

“Seventy-eight percent of business leaders expressed some concern about the incoming administration’s stated plans to relocate federal agencies outside of the DMV. We would see that as damaging to economic growth around the region,” Coons said.

Such moves would be part of the Administration’s advisory-only Department of Government Efficiency, or DOGE, which could also reduce the federal government’s regional workforce. In the survey, 27% of business leaders said they were very concerned about the impact.

Other concerns about the new administration include tariffs, cited by 30% of business leaders, and immigration reform, cited by 16%.

Northern Virginia business leaders were also asked what priorities they have for the Virginia General Assembly in 2025. The top answers were tax cuts, transportation and infrastructure, keeping right-to-work, and public safety.

The business leader survey was conducted from Jan. 2 through Jan. 15 and included leaders of businesses of all sizes. Full survey results and methodology are online.

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