NORFOLK, Va. (WAVY) - Old Dominion University's 10th annual State of the Commonwealth Report reveals some good news about Virginia's economy. The report, produced by the Dragas Center for Economic Analysis and Policy, goes over Virginia's economy during 2024, discussing declining inflation, rising consumer spending and growing jobs. According to the report, the high cost of items people use most — like bread and milk — are more noticeable than the wage increases, which have increased faster than inflation. On the job front, the report found that a record number of people were employed this year, with the unemployment rate remaining below 3%. In addition, there were more available jobs across the state than Virginians available to fill them. While the report shows mostly good news, the biggest issue remains the high cost of housing in Virginia due to a shortfall of building after the Great Recession. Twenty-five percent of single-family homeowners and 50% of renters were found to be cost-burdened, meaning they spend more than 30% of their income on housing. Bob McNab, director of the Dragas Center and lead author of the report, said he believes that reducing the barriers to building houses could help with this issue. "Building more housing at any price point increases supply and reduces prices pressures," McNab said. The report also went over the role the proposed tariffs could have in our local economy, as consumers will likely have to pay the price. In addition to the tariffs, McNab said the relocating or reducing of federal workers being considered by the next administration could also have a negative impact on employment, incomes and GDP growth. "The best course of action for Virginia is to invest in itself, focus on building more housing and remain fiscally responsible," McNab said. To read the full report, click here.