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Yahoo
22-02-2025
- Business
- Yahoo
Housing crucial to economic development, way of life in region
Housing is a core, vital component of improving the quality of life in a region. That can take many forms and accomplish wide-ranging objectives. It enhances economic development efforts in attracting outside businesses to locate to the area or existing businesses to expand. And, more available, affordable housing may offer seasonal workers a place to call home while they work in the area before moving on to their next stop, it may provide a better way of living for senior citizens, and it may simply give comfort and a dash of hope to a family struggling to survive a difficult period in their lives. The New River Gorge Regional Development Authority (NRGRDA) last fall undertook a process that will analyze the housing situation in a four-county region (Raleigh, Fayette, Summers and Nicholas). Bowen National Research, an Ohio-based firm, was engaged to compile the survey. Jina Belcher, executive director for the NRGRDA, said that a draft plan of the study was received last week, and an advisory team is currently reviewing it to make necessary edits. 'Our goal is to have it reviewed and finalized by the end of February,' Belcher said on Feb. 12. Partnering with Michelle Rotellini and the Beckley-Raleigh County Chamber of Commerce, the study will be unveiled at this year's Future Forward event April 22-23. Bowen National representatives will be onsite on April 23 to present the findings. 'It definitely provided us some data to show us what we all know, that we do not have enough housing,' Belcher said while highlighting some of the findings listed in the draft report. 'With the current job projections, with the national park (New River Gorge National Park and Preserve in Fayette County) designation, we are experiencing a considerable deficit on workforce housing and single-family homes in our whole four-county region. 'One of the really interesting data sets that I'm excited to hear and learn more about is the median household price, especially in Fayette County, compared to the median household income. That data is telling us that the influx of out-of-state purchasers for short-term rentals has drastically affected the median income price of housing, especially in Fayette.' For instance, Belcher says the median household income for residents in Fayette County is 'right around $45,000,' adding, 'But, the median average price per single-family homes came back at just under $400,000.' In Raleigh County, she pointed out, the median household price is around $450,000 per home, while the average household income in Raleigh is about $150,000. The higher Raleigh income standard is based on demographics such as the county having more school-age children leading to larger families, and more families with dual incomes, she noted. 'Fayette County is a drastic shift for us to see, so I'm really anxious when Bowen presents this to the public for them to share what they feel some of the challenges are and how we're going to overcome them. Because the last thing we want is to recruit homebuilders that are building $400,000, half a million dollar homes and then price out residents.' A possible remedy to that is working with zoning in local municipalities that could include price caps or stipulate that individuals 'can only own a short-term rental if you have a full-time residence here, something like that,' she said. 'One of the challenges that you face in purchasing for short-term rental is that ... the bed tax from those rentals goes directly to support CVBs and the tourism industry, which we would never want to diminish, so it's sort of this double-edged sword,' Belcher continued. 'We want to make sure our tourism industry is thriving; we want to make sure we have the marketing dollars to market our region and market the assets that we have here, but that money comes from the bed tax. If you don't have those short-term rentals, you're not seeing as much of an influx in the bed tax. 'It's a challenge all the way around.' A handy portion of the study is that '(Bowen) gave us a land plan and a tool to use to determine the best type of housing for a parcel of property, so determination can be made if it should be mixed-use or low-income or single-family,' she said. In doing the legwork for the survey, NRGRDA presented five different properties to Bowen, including Wolf Creek Park in Fayette County and two sites in Raleigh County, to explore. Among the considerations, too, were a scenario in which a new developer comes into the region and has a large tract of property on which to operate. A public information session was scheduled by the Fayette County Commission on Feb. 19 for Wolf Creek, which NRGRDA owns via an memorandum of understanding (MOU) with the county commission, the latter which purchased the site for about $2 million utilizing American Rescue Plan Act (ARPA) funding. The Wolf Creek property, located on the Nick Rahall Greenway near the intersection of Appalachian Drive and Rte. 16, features a Dept. of Environmental Protection office, the Fayette County 911 Center, Fayette Veterinary Hospital, Bridge Brew Works and is host to the annual New River Nature and Birding Festival. According to Belcher, there are scattered houses, but in the nearly 900 acres which NRGRDA owns, there is no housing. The area features a trail system and a bird watching area. Of the acreage, she said it is estimated that between 200 and 250 acres are developable, and the rest would be conserved. That will be detailed in a land plan. 'The goal is to preserve as much of the trail system and bird watch area that we can, and we're committed to that,' she said. 'And we do feel that it's going to be priority housing and maybe some single-office spaces that are developed there.' No major development is planned. The property and the utilities around the area aren't conducive for large job creators, said Belcher. 'We're hoping to find a developer to build more housing (multi-use) at WCP and are looking to NRGRDA to advise us on ways to make it an attractive development opportunity through things like incentives or creative financing,' said Fayette County Commissioner Allison Rae Taylor. The overall housing survey includes low-income, single-family, multi-family, apartments, senior housing and seasonal workforce housing, Belcher said. 'We really asked them to run the gamut.' The study also features 'a lot of conversation' about Airbnb and Vrbo, short-term rentals and monthly rentals. 'Again, looking at the ownership structure of those and the percentage of out-of-state owners versus in-state owners,' she said. Independent/assisted living facilities, such as The Villages at Greystone in Raleigh County, provide multiple options for area senior citizens, in addition to making more housing stock available to the public, she noted. 'I feel it is going to be an all-around good report, but I do find a little bit of the numbers a little shocking, especially around Fayette County,' Belcher said. 'We all knew it was going on. I don't think I realized it was going to reflect like that.' What are the ramifications of housing availability on economic development? 'When we look at companies that are expanding (such as Klöckner Pentaplast of America in Beaver, Gainwell Engineering in Hico, and SMR Technologies in Nicholas County), it poses a real issue for companies that have multiple locations throughout the U.S. for them to choose their West Virginia site to invest in, because if they can put their money in (a site in another state) because they can find more housing for their employees, it's a lot easier for them to do that,' Belcher said. 'It does create a challenge with being competitive with our recruitment of business and also expansion of existing businesses.' For more on the preliminary process involved in the housing study, visit Among the ongoing work in the region to bolster housing opportunities is renovation of the Hargrove Apartments in downtown Beckley, Belcher pointed out. 'That's a really good example of the Build WV credit that we (the state) have that provides an incentive for housing development,' Belcher said. 'We helped (developers) access that credit.' Concurring with Belcher's sentiments about Fayette County prices, Fayette County Assessor Eddie Young says housing prices have seen a major shift in his county in recent years. 'Prices have gone through the roof since Covid,' Young said. 'Covid kicked in, then we became a national park and everybody's getting on the bandwagon with Airbnb and the Vrbo (vacation rentals by owner) thing, and people from out of state are coming in and buying up everything they can find sight unseen for Airbnbs.' Young said he ran some random samples of property sales in the county's New Haven District from 2020, and the samples averaged $80 per square foot. The same random sales in 2025 averaged $175 per square foot in sales. Samples weren't located in city limits, he said. 'Those obviously would be more.' 'The problem we have here, that I see, is a person can't move to Fayetteville, and Oak Hill not quite as bad, and rent a home to live in,' Young said, due to scarce availability. The Airbnb movement has 'kind of leveled off somewhat,' he said, 'but what it's done has driven the prices up to where now that anybody that lives here has to pay these phenomenal prices. And, that makes it hard to do my job, because everything I do is based on what everything is selling for, and we have to value these properties. ... It's a tough situation right now as far as trying to find a place to live.' Take Young, for example. 'I myself have wanted to sell my house for two years now. I could sell my house just like that, but I can't find anything to move to, and that's what we're facing here in this county.' Currently in the county, he said recent work has included a project by Whitewater Property Ventures to transform the former Fayetteville Elementary School into apartments, and to construct some adjacent town homes. Similar projects have occurred elsewhere in the county, he said. 'Other than that, we don't have any new construction to speak of. You have a few new homes and everything, but right now the cost of materials is so high that people are not building much.' Another project utilizing the Build WV legislation, as well as federal and state historic tax credits, for funding is the long-term Wiseman & High Apartments in Fayetteville, built earlier this decade on the site of the former Fayetteville Elementary School. According to Preston Wendell, a principal of developer Whitewater Property Ventures along with his father, Charles Wendell, and his uncle, Pat Hooten, said that Wiseman & High features 19 apartments, of which 17 are currently rented. Four town homes are also being erected nearby and should be completed within the coming months. The developers are still weighing whether to rent or sell the town homes. Hooten said several of the apartment tenants are part of the Ascend WV program, as well as some locals. It's a 'fantastic group of tenants,' he said. Hooten, who manages the apartments, said a one-bedroom unit rents for $1,410 per month and a two-bedroom unit goes for $1,725 monthly. That includes fast internet, water, sewer, trash and free storage (the latter on a first-come, first-served basis). According to Preston Wendell, the school gym was renovated into a co-working space for Ascend WV workers and other tenants. Wendell said he would be remiss not to mention his father, Fayetteville leaders and others throughout the state for backing the project of converting the old school into apartments and preserving the historic aspect along the way. 'They saw the value,' he said. In 2022, former Gov. Jim Justice encouraged the creation of Build WV, a program aimed at spurring housing development in certain areas of West Virginia to help address the need for achievable housing, according to previous reports. The creation of the program is intended to support the expansion of technical, industrial and commercial markets for West Virginia by providing tax incentives to developers and builders for constructing qualified housing projects under the umbrella of the WV Department of Economic Development. Local Realtor David Sibray, of Foxfire Realty, said the current seller's market has been solid and should remain that way. 'What we're witnessing is the most potent seller's market in recent history, and it doesn't look like that will end in the next decade at least,' said Sibray. 'Much of that is due to the remote-work revolution, which is allowing many people to leave the factories and offices in population-dense areas. They appreciate the friendliness of West Virginians and, of course, the relatively low taxes and cost of living and its mountain beauty. 'In southern West Virginia, this leap in demand has been magnified by the presence of the new national park, which has been attracting residential investors since its (late 2020) inception,' he added. 'They're attracted by the economic growth that national parks have been shown to create and by the opportunity to interact with others who share their love for the park. Thus, rock climbers, in particular, have been investing in building homes here in record numbers.' Sibray services both middle- and high-end properties. 'We need more skilled contractors to keep up with it all,' he said. 'Sales are certainly on the rise. It hasn't ended. Communities that are lagging are those that are not investing in their infrastructures. People who are moving here want walkable towns with good public safety. Good landscaping and attention to beautification on a serious scale is now vital, where it was once an afterthought. People aren't moving here because they have to; they're moving here because they want to. Towns like Lewisburg that employ best practices in community development are succeeding wonderfully.' On the lower end of the market, availability and affordability of housing for low-income and underserved residents is just as critical as homes being available to those who are more well-to-do, says Dr. John David. 'One of our concerns is we believe there is a huge problem with habitable housing' in addition to options for what is considered affordable housing, he says. In a recent op-ed column in The Register-Herald, David highlighted the Southern Appalachian Labor School's long-term partnership with Colorado-based Group Mission Trips in rehabilitating substandard homes in southern West Virginia. In the column, David wrote: 'The current slowdown in the economy has raised new fears that the housing crisis will continue to worsen. While housing is now on the front burner as the next challenge in helping families escape from poverty, there is renewed concern that the welfare-to-work initiatives may sour. Joblessness is increasingly becoming visible, sustainable year-around employment is becoming more scarce, and retraining programs are having more placement difficulties. 'At the same time, those promoting economic development fully understand that adequate housing is a key success component. More often than not, a 'curb-site' inspection of housing in the community can easily deter a prospective firm. Thus, upgrading the housing stock is not only a quality of life issue, it is also the cornerstone for rebuilding West Virginia's economy for the new century.' Securing loans to pay for ownership of homes — including for two structures built or in progress in Page by SALS staff and housing volunteers — for many residents is a non-starter, said David. 'We're being bombarded with people that don't have the proper credit rating to obtain loans. 'West Virginia has home ownership,' he continued. However, some of the homes still in use by residents have improper insulation, wiring and water and sewer services, according to David. 'What really, really concerns me is we are getting almost no help (from county governmental agencies) in doing repairs,' David added, with the Kanawha County Commission being an exception. 'People here in Fayette County are calling like crazy. What they need is wheelchair ramps, insulation, roof repairs ...' Available land is also an issue, he stressed. 'Affordable housing requires land, and that land has to be served by utilities.' David mentioned an unsuccessful move to obtain the former Hawks Nest Country Club land (now occupied by the Fayette County Firefighters Association) to build a low-income community. 'That land is an example of land that would have been appropriate. There is no question that housing is needed, the question is where are you going to put it and how are you going to afford it?'
Yahoo
14-02-2025
- Business
- Yahoo
Report says area housing not matching growth
TRIAD — Guilford County does not have as big a gap between its available housing and the demand for it as the state's largest counties, but it's still on pace to fall about 33,000 housing units short over the next five years, according to a new report. Making matters worse, one of the county's neighbors — Randolph — faces potentially even worse gaps in percentage terms than Guilford does, according to an analysis by Bowen National Research that was commissioned by N.C. Chamber, North Carolina Home Builders Association and NC Realtors. North Carolina already is struggling to build enough houses for its growing population, and the number of households in the state is projected to increase by 5% (218,160 households) by 2029, Bowen's analysis said. The report examined projections for rental and for-sale housing supply inventory and demand in each of the 100 counties. Unlike many other counties, Guilford does not have a significantly larger gap in its rental market than in its market of housing for sale, according to the report. The analysis does not break down where in the county any gaps might be concentrated. By 2029, Guilford is projected to have more than 89,200 rental units, which would be 16.5% fewer than the projected demand for rental units is, the report said. That's a smaller gap than most of the state's 100 counties are projected to face. By comparison, Guilford is projected to have more than 139,600 for-sale units by 2029, 13.2% short of projected demand. That's a larger gap than about two-thirds of the state's other counties. However, neighboring Randolph County has among the worst gaps in both markets in percentage terms. Randolph is projected to have a little less than 46,000 for-sale housing units in 2029, 16.6% short of projected demand, the report says. That's the 11th largest percentage gap in the state. Randolph is projected to have a little more than 14,000 rental units by 2029, 21.6% short of projected demand, the 15th largest gap in the state. Two economic development projects in Randolph County — the new Toyota Battery Manufacturing plant in Liberty and the Ross Stores Inc. distribution center in the Randleman area — are expected to be among the larger drivers of new employment in the southern Triad over the coming years. Davidson County is projected to fall 12.8% short of projected demand for for-sale housing and 19.1% short of demand for rental housing, the report says. The state's largest, fastest-growing counties, as might be expected, have some of the largest projected gaps between supply and demand, particularly in rental housing. Wake County is projected to fall 16.6% short of needed for-sale housing, 10th highest in the state, and 28.6% short of needed rental housing, sixth highest in the state. Mecklenberg County is projected to fall 15.8% short of needed for-sale housing, 16th highest, and 27.8% short of needed rental housing, seventh highest. Bowen's report, 'Housing Supply Gap Analysis,' can be found on the chamber's website,
