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Part 2: Is There A Housing Price Bubble In Hampton Roads?, Regional Studies Institute, Old Dominion University

State of the Region Reports: Hampton Roads

While housing prices increased 40 percent in Hampton Roads (after inflation) during the past decade, most of this increase can be attributed to improved eco-nomic fundamentals such as lower interest rates, increased incomes, Department of Defense housing incentives and more cautious building policies by area developers. Hence, we do not have the kind of housing price bubble that currently exists in cities such as San Diego, San Francisco and Boston, and the state of Florida. We may face some future price adjustments, but they are not likely to be wrenching.