NORFOLK, Va. — While the regional economy is improving and Virginians are finding work according to the 2023 State of the Commonwealth Report put together by ODU economists, economists say they're keeping an eye on a stagnated population.
The current population is finding jobs, the report states, with a record number of Virginians finding work in 2023.
"We are set up, I would argue, for a good year in 2024 especially as inflation continues to moderate, gas prices continue to decline and defense spending continues to increase," said Bob McNab, professor of economics at ODU and director for Dragas Center for Economic Analysis and Policy.
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But that's just half the battle. McNab explains future economic opportunities are closely aligned with the rate of population growth.
Compared to neighboring states in 2023, he said, our population has stagnated as young people between ages 20 and 34 leave the area.
"So, if we are looking to grow as a region and we have fewer younger people here, it's just a challenge for employers to fill those entry-level positions that move up over time into middle and upper management," said McNab.
"I know a good chunk of my friends are thinking about leaving out after graduation," added ODU student Jared Gibson.
What would it take for Gibson to stay in the area after his graduation?
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"As long as I am able to make the pay I think is deserving and something for my girlfriend, she has to be able to make sure she gets her job too," said Gibson. "As long as we are both happy with getting a good job as well as getting into a place we enjoy, we'd stay for that."
Students told News 3 that job opportunities and housing are key factors in whether they'll stay or go.
The economic report showed housing values rose in 2023 and left those in real estate eyeing interest rates.
"We weren't initially sure what they were going to do," said Erin Ward, CEO and team leader at HRVA Homes powered by Keller Williams Realty. "And then we saw kind of a quick and very fast rise in interest rates. So we had a low inventory, high interest rates, and it kind of caused a lot of confusion in the market, it felt like."
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Ward explained that people loved the lower interest rates from the pandemic, so they stayed in their homes in order to stay in a desirable location. Consequentially, those in apartments who wanted to move to a house had fewer options. Ward hopes easing interest rates will open up the market in 2024.
"I predict we will see a lot of competition for buyers," said Ward. " So anyone that was on the fence should probably get off the fence."
Economists added that although there are areas to watch, our area is in its third year of economic expansion. If all goes well, they expect to see more economic growth in Hampton Roads in 2024.
