NORFOLK, Va. — With just a few weeks until America votes in the 2024 elections, polls show Americans believe the state of the economy is a top issue.
Gas prices, grocery costs, and mortgages are all on the rise, but experts in Hampton Roads said on Tuesday at the annual State of the Region event that Hampton Roads' economy is not only good, it's growing.
"Average wages in Hampton Roads rose faster than the United States. That hasn't happened since the Great Recession of 2008," said Bob McNab, chair of Old Dominion University's Economics Department.
McNab said for the first time in almost two decades, the regional economy grew in four consecutive years. This includes not only wages but also the overall civilian labor force and a record number of jobs.
However, a negative perception of the economy remains. Economists said this is in part due to national inflation, and specifically the price of housing.
"40% of the weight of inflation is the housing," said Vinod Agarwal, with Old Dominion University's Department of Economics. "Most people are not watching their money go into their bank account, but they are watching it go out, and housing and renting remain as some of the most serious concerns."
Economists said Hampton Roads cities are not building single and multifamily housing at a sufficient pace to meet current demand.
While this is part of a national issue, economists argue local zoning laws pose a real barrier to developers looking to build, and that building houses for only one economic group such as "affordable housing" can actually hinder the market.
"Think about it, there is a lottery in place to even get into these houses, and if you get in, then great, but what happens if you don't?" asked McNab. "You don't get housing. And now, you are building housing at above costs that a lot of people cannot qualify for."
Instead, economists urged local governments to relax zoning laws and to regulate the laws as a region to entice more developers to enter Hampton Roads. They said where houses are built, people will go, and more jobs will follow.
Several Hampton Roads leaders attended the State of the Region and told 13News Now they would take back the ideas to their prospective city councils.