The third annual Southside regional real estate forum, held Wednesday, April 30, showed both challenges and highlights of growth in the area.
A panel discussion followed a luncheon and networking period for attendees. Realtors, investors, real estate agents, developers, and others within or adjacent to the industry were invited to attend the yearly event, this year held at Motleys Mill in Chatham.
Kat Saunders, a partner and head of strategy and leadership at a small, NYC-based consulting firm, Economic Leadership; Kelvin Perry, assistant director of Danville’s economic development and tourism department; and Shannon Hair – representing the Danville Pittsylvania Chamber of Commerce – were the three panel speakers.
Perry said the Danville community, specifically, was growing, and constantly changing. Even with the uncertainty of tariff impacts coming from the federal level, Perry said investors are still interested in setting up business in Danville; his department, he said, meets regularly with prospective clients. Any incoming businesses will require more housing for incoming workers.
Saunders, whose consulting firm focuses largely on economic development and helping areas be competitive in growth, said Virginia’s business climate is overall favorable.
Business climate is one of four main “pillars” Saunders said her firm considers when working with different regions or localities. The other three include workforce – which entails training, education, birth rate, immigration, K-12 schools, and population; innovation – what is being created, access to other markets, and the like; and infrastructure, which encompasses everything from roads and utilities, to childcare and housing.
“Workforce housing,” or housing working class people can afford, especially first-time homebuyers or new families, was a dominating point of discussion.
As economic development expands in Danville, demand for housing rose along with it, and the city – along with the region at large – found itself grappling with a housing crisis. Availability and affordability are two key issues at play.
With Caesars Virginia now operating in Danville, and other economic development under consideration or in progress, demand for housing is high, but affordability – and availability – for most workers is an issue, regardless of where they are employed.
Wages have largely not kept up with the increasing cost of living for most workers. Likewise, prospective homebuyers have had an increasingly hard time competing with investors when it comes to purchasing a property, according to forum attendees sharing client experiences. Some individuals are paying so much in rent, they could afford a home if they had a chance to secure one.
“I think one of our areas that we lack in is that the housing here is just not affordable for young couples. There’s no starter homes. If you’re going to get a house, it’s going to be tiny, it’s going to be in a certain area, it’s going to be a fixer-upper. I feel like we’re really lacking when it comes to new families,” said Emily Wright, sharing insights to challenges many of her clients faced.
While some localities have neighborhoods featuring model homes buyers can start with, then build on from there, Danville does not have that type of option, Wright said.
“Obviously, we look every day and try to find stuff for our buyers, and our affordability when it comes to under $200,000, or even just up to less than $250,000 is, I think, lacking in our area,” Wright said. “I think a lot of new people that work at casinos – they can’t come in here and tour a $350,000 house that needs cosmetic updates. That’s what I see, really, as a realtor as lacking in our area right now, is for the starter families that can’t afford a $300,000 house.”
In response to Danville’s housing issue, a solutions-focused housing summit – the Southern Virginia Regional Housing Summit – was organized, and has been held annually for three years. The event invites developers, contractors, builders, financial institution representatives, home renovators, architects, community advocates, and others to come together and examine statistics and trends in relation to housing and growth; learn about local, state, and federal funding options; share updates on construction projects already underway; identify housing needs in the region; and seeking solutions to meet those needs. Development opportunities are also shared with potential developers during these summits.
Danville projects about 3,900 people will be looking to move into the area for work, and the city is trying to bring in housing for all types of clients in all stages of life, Perry said. Danville has also tried offering incentives for developers interested in helping fill the gap of workforce housing.
Quality of life, and amenities are other components of growth, along with housing.
Saunders told attendees that real estate agents and other industry workers can play a vital role in ensuring major projects like Caesars Virginia are successful, and do not have to scale back their investment in the communities they establish themselves in.
“I have talked to people involved closely with that, and there is a big concern about where do the people go? Where do people get trained? Where do people commute form? How do they get around? How do they get around if there is a transportation option, if they don’t have a car? Are they coming in from other markets? I think when we think about housing, it’s really important to think about the role that plays in making sure these projects get off the ground, and that they’re successful,” Saunders said.
Danville is seeking to bring in more single-family homes at various pricepoints, according to Perry. Part of this initiative involves the city seeking to acquire properties that could be developed specifically for construction of residential housing. A representative from the regional Industrial Development Authority said the IDA recently acquired the property of a former golf course, and is seeking to market the land to developers specifically interested in building residential housing. This land parcel could accommodate between 250 to 300 single-family homes, according to IDA’s estimate.
Saunders encouraged attendees to help promote a growth mindset, especially among individuals who tend to be more opposed to development. She said all regional residents could benefit from the population growth more accessible and available housing could bring; larger grocery stores could come to the area and sustain business, for instance, which is something Saunders said she heard many locals are interested in. Having more amenities like that helps make a location more attractive to individuals looking to move.
“It’s really important that the real estate community helps drive that narrative around growth being beneficial to everyone in the community,” she said.
Saunders also said she expects to start seeing some legislative limits on investors that could level the playing field more for first-time homebuyers. Such measures could make buying a home more attainable.
Nicole Fountain of the Dan River Region Association of Realtors said she appreciated how this annual forum brought together professionals to support one another, talk about various issues, and brainstorm with colleagues, setting aside the competition for a change and focus on common goals.