THE REGIONAL AFFORDABLE HOUSING GAP is a dilemma for the long-term, agreed NVAR Convention session panelists discussing the current commercial and residential market. Reality is that many neighbors are challenged to secure affordable, decent housing.

Presenters at the 11:15 a.m. Regional Market session said that local governments continually struggle to solve that need. One point of agreement: a long- term solution for their respective locations is years or perhaps decades ahead.

It is no secret that reduced federal funding for housing has meant that local governments must make decisions about how to provide workforce housing. Discussing the commercial and residential market were Moderator Mark C.Looney, attorney with Cooley LLP; David R. Millard, principal of Avison Young; David Diaz, CEO of The Tysons Partnership; Bo Menkiti, CEO of KW Capital Properties; and Buddy Rizer, CEO of Loudoun County’s Department of Economic Development.
 

Experts discuss the regional landscape. (left-right) Moderator Mark C. Looney, attorney with Cooley, LLP; David R. Millard, principal of Avison Young; David Diaz, CEO of The Tysons Partnership; Bo Menkiti, CEO of KW Capital Properties; Buddy Rizer; CEO of Loudoun County's Department of Economic Development.

HOW WELL IS THE CURRENT SYSTEM WORKING?

“Going to the office” just isn’t like the old days, according to Millard. “Trends that started five years ago focus around the mantra that work is what you do, not where you do it anymore,” he said. With the advent of working remotely and digitally, the virtual office arrangement “is going to accelerate.”

He pointed out that with new emphasis on work-life balance, commuting to work by Metro is just one choice; working from home or from the local Starbucks are viable work site alternatives.

The commercial market has its own growing pains regionally. Millard cited that “65 percent of all office buildings in Northern Virginia are at least 20 years old [and reaching] the end of their useful life.” What developers do with aging buildings that are not amenity-rich is a problem for commercial practitioners.

Diaz knows that with the region’s high vacancy rate, the market will take time to “absorb all that product.” He announced plans for more residential diversification around Tysons, which will include townhomes and senior housing residences. “As a city planner, I like that the region appeals to millennials and boomers,” he said. “Five years from now, we will offer more nightlife and culture.” While most think of work or retail for the Tysons area, he predicts that will change. “Capital One  is building a 1,500-seat performing arts cultural center, among other Tysons upgrades,” he noted.

A work-lifestyle balance shift is also taking place in Washington, D.C., according to panelist Menkiti. He pointed out that while the District offers established retail corridors, as in Georgetown, D.C. retailers also want to remake themselves. Expansion is happening more broadly in the city, with the idea of ‘the downtown’ as a broader geographical land mass.

Lifestyle is a major priority to those living in the District, Menkiti said. “People want a living working lifestyle experience. It’s about where you work; where you live; where you play.”

Since Class A luxury apartment products predominate the construction landscape, he explained the dilemma that current D.C. job growth does not sustain the high-end housing that is being created.

Rizer highlighted the rapid growth of Loudoun, which went from 100,000 people to 375,000 people in the past 10 years. “That has been an interesting dynamic, he said. “We are known for our 10 million square feet of data centers with another 3 million square feet under development.”

Metro is a main consideration when planning Loudoun’s future, as three stops are scheduled to open in Phase 2. “We added 10,000 new jobs in the last three years. This is a pace that will grow even faster,” he said. “Surely some new employees will want to move there. How are we going to house these people? That is making a big difference in our planning. We have to change our conversation about housing, as we do want walkable communities. [Housing] has been cash negative in our community.”

With the current housing market throughout Northern Virginia and in the District, all panelists know that residential affordability questions prevail. It used to be that people would drive until they qualify, they all agreed. Consensus was that there are new challenges that must be addressed in the coming decade. The panelists agreed that incentivizing affordable housing at the government level was one solution that could help each region create a solution in its own backyard.

“Workforce housing is a neglected part of our economy,” concluded Millard.