NORFOLK, Va. — Industry leaders will meet Wednesday to discuss the state of the real estate market in Hampton Roads.
The annual Hampton Roads Real Estate Market Review & Forecast comes as the prospect of homeownership remains elusive for many people.
According to NerdWallet, the current interest rate for a 30-year-fixed mortgage is 6.47%. The National Association of Realtors reports that single-family median home prices jumped 5% in the first quarter of 2024 from a year ago to $383,500.
Despite the climbing numbers, local experts believe certain factors could put Hampton Roads in a position to weather a challenging buying market.
"Partly because of the military, we already have a relatively large, rented sector, particularly in single-family," said Simon Stevenson, the Robert M. Stanton Endowed Chair of Real Estate & Economic Development and Director of the E. V. Williams Center for Real Estate in the Strome College of Business at Old Dominion University.
Yet, people and families are grappling with rent prices. The Harvard Joint Center for Housing Studies recently found that about half of renters nationwide are 'cost-burdened' — spending more than 30% of their income on rent.
Stevenson blames the rising dollar amounts on inflation and housing shortages.
"We haven't kept pace with the demand, in terms of new supply," Stevenson said. "It's not just 'build more houses'. That's not necessarily [going to] solve the problem. It's 'build the right houses in the right locations'."
With uncertainties plaguing other markets, Stevenson is optimistic that Hampton Roads can set itself apart on the national real estate landscape.
"The economic fundamentals are strong, that amount of volume that's going through the port," Stevenson said. "Hampton Roads is in a relatively better position than the vast majority of metropolitan... markets."
The Hampton Roads Real Estate Market Review & Forecast is March 13 at the Chartway Arena in Norfolk. Doors open at 2:00 p.m., and the event starts at 3:00 p.m. Tickets and sponsorships can be purchased here.
Advocacy groups and community members are urging Governor Glenn Youngkin to sign several bills that would protect renters' rights amid the rising cost of housing.