Despite the overall flat growth rate in the Hampton Roads region, this State of the Region had a whole section focused on expanding the housing market in Hampton Roads.They state that increasing the number of housing units may alleviate the affordable housing crisis. They even state that it doesn’t have to be affordable housing being built, just more housing of any type in general will bring down the costs of housing and rents. 

There is a genuine need for affordable housing in Suffolk, Hampton Roads, and throughout the country. However, in the State of Region, they offered no evidence that their plan would actually make housing more affordable. In Suffolk, since the 2020 census, there were 2,759 units added (based on residential permits issued by the city). This is in addition to the 38,364 units from 2020 census data. (Source: U.S. Census Data). With the average dwelling containing 2.5 people, that is enough housing units for 6,898 people. Remember that Suffolk added 6335 people in that time period. Census data also shows that there were 2,809 dwelling vacancies at that time as well.

Also during that three year period, according to the Zillow home value index, the average house price in Suffolk went from $261,802 in 2020 to $346,957 in 2023, an increase of $85,155. The Suffolk market built more houses than the population growth required, had a vacancy rate of 7.3% and prices still increased by 24.5%. Clearly the housing costs are not just simply an effect of supply. 

The State of the Region goes on to explain that the onerous rezoning and permitting processes are hindering the housing market: ”While zoning codes are the primary regulatory constraint on new housing supply, the site and building plan approval process described above is also a very real barrier to production.” On pages 80-81 they specify that to navigate the process from rezoning to permitting requires them to contract with specialists including: land use attorneys, environmental consultants, traffic consultants, wetland consultants, civil engineers, architects, plumbing/mechanical/electrical engineers, and landscape architects. 

They state that: “Building projects are not only subject to local ordinances and regulations, but also to state building codes and myriad other state and federal requirements governing road design and construction, accessibility, wetlands, endangered species, and many other areas.” 

These hardships they are citing are the laws and regulations that make sure development is safe – safe for those constructing it, safe for the new owner, safe for the community, and safe for the environment – oh the horrors!!! Then they state that the costs can climb into the millions of dollars. But if you look at their data, and take the average figure, all of these building regulations meant to protect people and the environment, when broken down, come to about $6,700 per multi-family home or $22,000 per single family home. The developers and builders don’t eat that cost; it is added to the price of the home. Compared to the cost of land, labor for construction, materials, etc., the added cost to ensure that development is safe for our community doesn’t seem that onerous, nor does it seem to be the bulk of the development costs. 

This biggest takeaway from this State of the Region, and the reason why it should be important to every Suffolk citizen, is the part where they state that Hampton Roads needs more housing and that, “Given that more than 50% of workers in Hampton Roads live in one community and work in another, we should be indifferent about where jobs are created in the region. Building more housing, regardless of type, benefits the entire housing market. Lastly, housing policy is something we can directly influence in Hampton Roads and would benefit each of the key industry clusters as well.” (page 31)

It doesn’t matter to THEM where the houses are built, or what type of housing it is – it all benefits the Region. And it benefits the economic development of the Region, even if the jobs aren’t in the same location as the housing, because they have shown that people will travel from one city to the next for work.

There is a huge problem with this line of thinking. Hampton Roads is a region and NOT a municipality. A business building in Chesapeake pays Chesapeake taxes. A house built in Suffolk pays Suffolk taxes. This matters because residential housing is a loss when it comes to tax revenue versus costs of services. Residents require more services (roads, schools, libraries, parks, emergency service, etc.) than commercial and industrial developments. Warehouses have relatively low costs of service, but they also do not generate much in taxes, especially considering their footprints. Agriculture generates a net positive because, although it isn’t the highest in revenue, it also requires the least of any land use in services. Manufacturing and commercial tend to generate more in revenue than their costs of services. This is important because a municipality needs to BALANCE the residential/warehouse development to ensure that there is enough manufacturing/commercial to offset the residential development. 

The 2045 Comp Plan recommends changing the land use of  huge swaths of fiscally positive agricultural land for development as warehouses and workforce housing, which will be a drain for the city financially. No wonder the city staff decided to forgo the fiscal impact analysis, probably because it might have ruined the narrative that these decisions are fiscally good for the City. In another article, we discuss the regional influence on the 2045 Comp Plan. Regional “leaders” are looking out for the interest of the greater Hampton Roads Region and the direct impacts on Suffolk are NOT the priority to them. 

An additional element from this report that is reflected in Suffolk’s proposed 2045 Comprehensive Plan is the idea of making the rezoning process easier for developers.