HAMPTON ROADS, Va. (WAVY)—Two Habitat for Humanity local affiliates decided to hold off on accepting affordable housing applications due to the current housing market.
“It was a decision made out of necessity,” said Frank Hruska, executive director with Habitat for Humanity of South Hampton Roads. “The price of food, you know, the price of land, the price of building materials, the price of subcontractors is a perfect storm.”
Habitat for Humanity Peninsula and Greater Williamsburg CEO Janet Green told 10 On Your Side that “we do have funds available to buy some land. … We want to keep it affordable for these families, so we can’t pay market rate or what the for-profit developers are paying.”
An Old Dominion University economist weighed in on what this means for our region.
“Habitat for Humanity saying that they can’t find land for purchase is just another signal of how tight the housing market is,” said ODU economics professor Bob McNab.
He calls it a housing and supply problem, not a demand problem.
“People want to purchase single-family homes even with higher interest rates,” McNab said. “There just aren’t enough homes out there to satisfy demand.”
Hruska said the organization has seen that demand surge over the years.
“In 2018, we had 95 applications,” he said. “We picked five. In 2023, we had 395 people apply for a home.”
He said the homeownership application gives a family the opportunity to get a newly built home at an affordable rate. Hruska said it’s important to have affordable housing in the community, especially for the working class.
“We’re trying to do is help people make the American dream,” he said.
McNab said the housing and supply issues won’t be alleviated anytime soon.
“We’re not going to just wish this problem away,” he said. “This is just another warning sign of a crisis that is unfolding for housing in Hampton Roads.”
He believes the answer is more housing.
“We need a concerted effort to solve it,” McNab said. “The solution is straightforward, complicated. It means more dense housing in single-family neighborhoods, so more townhomes alongside single-family homes, more apartment homes alongside single-family homes … rather than everybody has a single-family detached house with a big yard.”
Habitat for Humanity of South Hampton Roads hopes to acquire more land this year and possibly open applications later in the year.