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HURRICANE — A four-story apartment building tucked behind a bustling coffee shop and Wendy’s restaurant in Hurricane offers flashy modern amenities and views of the valley.
But these units aren’t cheap. A one-bedroom apartment costs $1,650 a month, nearly double the market rate of other apartments in Putnam County.
This building is part of a $90 million investment in the county, which is one of West Virginia’s fastest-growing areas, through a 2022 state program intended to spur housing development.
But despite the investments, many West Virginians are still struggling to find housing they can afford. And the narrowly focused program doesn’t address the state’s widespread housing crisis, fueled by rising prices and aging homes.
West Virginia leaders promised the BUILD WV Act would tackle the state’s housing shortage. However, the program has produced units priced above what many families in the state can afford.
West Virginia’s housing crisis
West Virginia faces a shortage of units at nearly every income level, according to a 2019 statewide needs assessment from the West Virginia Housing Development Fund. A new survey with a similar finding is set to be completed by the end of the year.
Daniel Eades, a housing researcher at WVU, said low-income families and those with fixed incomes are being squeezed the hardest in the state’s housing market.
He also said nearly 140,000 households are cost-burdened, which means they spend more than 30% of their income on housing.
Families who pay more for housing have less money to spend on other essential items like health care and food. That financial strain can significantly impact one’s mental health and physical well-being.
Eades said there were myths about who affordable housing is for, but it doesn’t just impact low-income earners.
“This is an issue that impacts everybody,” he said.
And demand for new housing has outpaced supply, while dilapidated, older homes and abandoned properties are scattered across the state.
“West Virginia’s housing stock is older, it’s of lower quality, it’s not energy efficient,” Eades said. “We may have houses, but they’re not the right kinds of houses that people want or need.”
Lawmakers passed the BUILD WV program to address housing issues
When Gov. Jim Justice signed the BUILD WV Act in 2022, he said it would keep young workers from leaving and attract more professionals to West Virginia.
The law, passed at Justice’s request, created new tax incentives for developers to jump-start housing development across the state.
Since then, state officials have approved 29 projects worth about $225 million in 13 counties, with Putnam County alone seeing nearly $90 million in new investment.
“How in the world can we expect people to move here if we don’t have housing and affordable housing?” Justice said during a press conference in Fayetteville.
The program offers a package of tax breaks: sales tax exemptions on construction materials, a decade-long income tax credit and potential relief from local business and occupation taxes.
To qualify, developers need to build six or more units or spend at least $3 million on a project.
“With rising construction costs, these incentives can make otherwise marginal projects viable,” said Andy Malinoski, a spokesperson for the state’s Division of Economic Development.
“While housing needs vary widely, Build WV offers one more tool to encourage development — including projects that address affordability challenges in local markets.”
But even with the new, above-market-price units spurred by the program, larger housing challenges remain.
Putnam County has seen the most investment so far
Putnam County is set to have hundreds of new units built through the program.
The county’s rapid growth, paired with a median household income of around $78,000, much higher than the state’s, has created strong demand for new housing.
And the federal fair market rent price for a one-bedroom apartment is $803 a month and $1,054 a month for a two-bedroom apartment in the county.
Yet, some of the finished BUILD WV units are already listed at prices much higher.
One property, 304 at Valley Pointe in Hurricane, lists one-bedroom apartments starting at $1,650 per month.
That price point might fit the needs of professionals making six figures. But it’s well beyond reach for many residents in Putnam County, where more than 40% of households earn less than $50,000 a year.
Morganne Tenney, executive director of the Putnam County Development Authority, said it’s up to developers whether they want to build more affordable housing options.
“We have a need in every unit type, for every income sector, socio-economic level, for every industry and occupation in Putnam County,” she said.
By 2028, the county needs to supply about 4,000 units to meet growing demand, according to a recent housing needs assessment.
Affordable housing could have a growing demand and should be part of future housing plans based on demographic and employment data, the assessment found.
Del. Sarah Drennan, a Republican who represents Putnam County, said lower-income housing goes quickly.
“If it does become available, it isn’t available very often,” she said, “just because this is an area that a lot of people want to be in.”
Reach reporter Tre Spencer at tre@mountainstatespotlight.org
