Realtors’ report shows sharp sales gains in Washington County; commission hears concerns about affordability and short-term rentals

Roberta Hilton, representing the Government Affairs Committee of the Southwest Virginia Association of Realtors, presented a spring-to-spring home-sales report that, she said, shows a notable uptick in activity for the three-county region and especially for Washington County.

Hilton told the Planning Commission the regional report shows about 10,600 net new jobs statewide over the year and that unemployment in the three-county area stood near 3.3% in the report’s data. The booklet cited a regional median sale figure near $225,000 and included a chart showing Washington County sales rising roughly 89% year-over-year; Hilton said a chart listed Washington County’s median at $264,000.

"It's gotten more expensive to take care of a family and provide a home," Hilton said, noting that a 30-year fixed mortgage rate in the report was 7.1% at the end of the first quarter though she said the rate had eased to about 6.85% more recently. She highlighted that the region’s sales volume in the first quarter was about $39.5 million (a 32% increase year-over-year) and that active listings had fallen in neighboring counties while Washington County showed a 26% increase in active listings.

Commissioners and Hilton discussed whether local zoning — including a recently created R3 zone intended to allow greater density — is discouraging builders. Hilton and commissioners said zoning did not appear to be the primary barrier; instead, they cited builder preference for higher-priced products, rising construction costs and a need for grants and partnerships to support smaller or subsidized units.

Public commenter Jack Dando, who said he now lives in Alexandria, urged the commission to learn from mistakes in larger cities and to consider upzoning to increase housing supply. Dando also raised concerns about short-term rentals and Airbnbs removing long-term units from the market and suggested the county seek data on how many units are being used for short-term stays.

Commissioners noted that the comprehensive plan update will need to grapple with incentives and zoning options to encourage more affordable and rental units, especially with local job growth expected from a nearby casino and an inland port that could add thousands of workers.

The Realtors’ materials and the discussion provide data points the commission said it will use when updating the comprehensive plan; no formal policy changes or votes occurred at the meeting.