The recent announcement of a $5 million grant from the West Virginia Water Development Authority to support housing development in Putnam County signals a pivotal moment for the Advantage Valley region. As the economic engine of West Virginia, our nine-county region is experiencing unprecedented growth, creating an unprecedented opportunity for real estate investors and housing developers to step up and meet the surging demand for housing.
Governor Jim Justice’s investment underscores the state’s commitment to addressing the housing shortage that threatens to slow our region’s economic momentum. With 600 residential units planned for the growing communities of Hurricane and Fraziers Bottom, this project represents a critical step toward ensuring that our expanding workforce has the housing options they need.
The Economic Opportunity
Over the next five years, the region has the potential to create over 5,359 direct and 17,506 indirect jobs. These new jobs will result in the attraction or creation of additional households that will exceed demographer’s previously projected household declines in virtually all counties, resulting in a gain of 13,000 new households for the region. According to a comprehensive housing study conducted by Advantage Valley, the region will need thousands of new units of housing to meet the demand generated by new households coming into the region including nearly 11,000 new rental and 20,000 for sale units.
Putnam County alone needs 1,800 rental units and 2,700 for-sale units to keep pace with demand. Currently, less than 400 rental units and only 115 for-sale units are slated for completion within the next three years—a gap that requires immediate attention. Stonewall Capital, a real estate investment and development firm, has already committed $35 million to build 600 units in the area. This collaboration, bolstered by the $5 million state grant, will fund critical utility expansions, road construction, and other infrastructure needs, paving the way for rapid development. The first phase of infrastructure work is expected to be completed by the end of 2025, with physical construction to follow.
Putnam County’s growth reflects a broader trend across the Advantage Valley region. As industries like manufacturing, technology, and healthcare continue to expand across Advantage Valley, more workers are being drawn to the area.
“We are excited about the potential of these developments and their positive impact on the entire region,” said Terrell Ellis, President & CEO of Advantage Valley. “Our recently completed market analysis quantified the need for more housing across all household income groups and types of development. It has been a good tool to promote the opportunities for new investment in residential development. This announcement will help ensure that the Advantage Valley region remains a vibrant and growing place to live and work.”
Why Invest Now?
With unprecedented growth in new jobs, West Virginia has placed an emphasis on promoting housing development to meet this surge in demand. The state has a number of resources to spur residential development including tax relief through the BUILD West Virginia Act, favorable state historic tax credits that when coupled with federal credits make investments in historic properties very attractive, and West Virginia Housing Development Fund lending products that promote back end financing for new homeowners and developers. The use of its Economic Enhancement Grant funds to tackle infrastructure development for housing, is an additional tool in our toolbox. With growing industries, an expanding workforce, and state-backed infrastructure investments, the conditions are ideal for real estate investors and housing developers to act. The $5 million grant for Putnam County is just the beginning. Other counties in the region also offer untapped potential for residential development.
Advantage Valley has an inventory of sites that are suitable for residential development. Reach out to Advantage Valley for more information on how we can help connect you with development sites and resources. Or reach out to us below ~ we want to discuss these issues with you!
January 2025 by Marjorie Cooke
