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2025 State of the Region Report is Now Available!
The 2025 State of the Region Report is divided into seven parts.
Change is the Only Constant: The Economy of Hampton Roads
We discuss how the region’s economy performed in 2024 and provide an assessment of the prospects for growth in 2025 and beyond. Rapid and significant changes in trade, immigration, tax, and expenditure policies will impact the economy of the region, state, and the nation in the coming years in unforeseen ways. We can, however, leverage historical data and experience to make informed judgements about the state of the regional economy and how it may fare over the coming year.
Defense, the Port, and Tourism: The Pillars of the Economy
There was (mostly) good news to report about the pillars of the Hampton Roads economy in 2024. More defense spending flowed into the region in 2024, and defense spending is likely to increase in 2025 and 2026. The Port of Virginia experienced gains in traffic in 2024, but tariffs have created headwinds in 2025. The hotel industry’s growth has slowed, and increasing uncertainty may undermine prospects for growth in 2025 and 2026.
Heads Carolina, Tails Somewhere Else
From 2021 to 2024, Hampton Roads grew more quickly and created jobs at a faster pace than the previous decade. Even after accounting for the impacts of inflation, real Gross Domestic Product (GDP), wages, and incomes were higher than 2019. The region’s economic performance relative to other metropolitan areas, however, has left much to be desired. One reflection of Hampton Roads economic performance has been the continued outmigration of residents to other locales in the Commonwealth and, in some cases, other states.
The Economic Impact of Norfolk International Airport
Airports such as Norfolk International Airport (ORF) serve as economic engines connecting cities and regions to other localities and generate economic activity that would not otherwise occur in their absence. ORF set a record for commercial service passengers in 2019 before witnessing a dramatic fall in traffic in 2020 due to the COVID-19 pandemic. Arrivals and departures quickly recovered, and ORF set a new passenger traffic record in 2024. This chapter explores the economic impact of ORF on the economy of Virginia.
Silver Tsunami for the Third Sector
Affordable housing is only one of several societal stressors predicted to have nationwide impacts in conjunction with what has been dubbed the “Silver Tsunami,” a significant demographic shift occurring in the United States. According to Pew Research, every day, 10,000 members of the baby boomer generation—born between 1946 and 1964—reach retirement age. The implications of this demographic shift will impact every facet of life in Hampton Roads. This chapter explores how an aging population impacts nonprofits in Hampton Roads.
Reflections on the State of the Region Report
In this chapter, Dr. James V. Koch, founding Director of the Dragas Center for Economic Analysis and Policy, reflects on the first 25 years of the State of the Region: Hampton Roads report. Dr. Koch provides insights on where the report has impacted the region. He also asks what the future may hold for the report.
Hampton Roads’ Collaborative Spirit Produces Regional Results
In this chapter, Drew Lumpkin, lead author, examines how collaboration has improved in Hampton Roads over the last two decades. He highlights specific examples of regional collaboration and how these efforts have changed the conversation in Hampton Roads.
