New Construction
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953 New Townhomes, Apartments, Detached Homes Proposed On 161 Acres At Quarry Heights |
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 download a larger version of the concept plan here A sizable new housing development is being proposed in the City of Harrisonburg, to include up to 953 new housing units on 161 acres just west of downtown Harrisonburg at the site of Frazier Quarry, which would be transformed into a 30 acre lake. The new development would be located on the north side of West Market Street generally across from Thomas Harrison Middle School and would border Waterman Drive.  click here for a larger version of the area map Here are some basics on the types of housing that are proposed for this new housing development:
Of the 653 townhouses and detached homes, approximately 48 housing units are estimated to be detached homes. This proposed new housing development is similar in size to Preston Lake, which is just east of Harrisonburg, located in Rockingham County. The conceptual layout shown above is not proffered, so that could change. The developer has outlined an extensive list of proffers, including:
Of note, the developer who is seeking the rezoning would not build the housing. They might build the apartments - but they would be partnering with a builder or builders in the future to build the townhouses and detached homes. A representative of the developer indicated that the following price ranges would be likely for the housing types that are planned for the development:
The Villas described above would be high end attached homes on the highest ridge of the development with eastern and/or western views. You can find links to additional documents related to this proposed development on the City website here. City Staff recommends approval of the rezoning and special use permits required for this development. A public hearing for Quarry Heights will take place at the Planning Commission meeting on Wednesday, October 9 at 6:00 PM. | |
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While Lots Of New Housing Has Been Approved In The City, Very Little Has Been Built |
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 Over the past 3.5-ish years, since January 2021... in the City of Harrisonburg... 2,886 new dwelling units have been approved 25 have been built Wow! Indeed, City Council has approved a LOT of new housing over the past few years, including...
And yet, over that same timeframe, the only housing to be completed includes...
Of note... these "25 units completed" does not include the following housing units that were completed over the past 3.5 years that were already approved 3.5 years ago, consisting of...
So, housing has certainly been built in the City over the past 3.5 years (a total of 209 dwellings) but that pales in comparison to the many (many!) units that have been approved and have not been built. Of those that have not been built... some new housing units are being actively planned, while the planning has stalled out on some. You can view a list of the approved developments in a memorandum to City Council here and a presentation about the housing pipeline here. | |
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242 New Homes On 92 Acres Planned At Granite Farm Just West Of Harrisonburg |
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 The property shown above is located in Rockingham County but the owner and developer would like water and sewer service to be provided by the City of Harrisonburg. Way back in 2004, the City approved providing water and sewer service for 285 homes. Then, back in 2006, the property was rezoned to allow for the development. The rezoning is still valid... but the applicant has to ask the City again for public utility access. Last week the Planning Commission approved the request and next up City Council will consider it. It appears that this new home development, Granite Farm, would be developed by D.R. Horton. You can find the details of the public utility access request here. Here's an aerial from Google Maps to show the context for this planned residential development, though the shape of the development parcel is a bit skewed in this perspective...  Here's a top down view with a broader context from the Rockingham County GIS...  | |
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Where Do All Of The People Work Who Will Live In All The New Housing Being Built? |
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 This is a good question and one that I have had multiple people native to the area and new to the area ask me over the past few years... Where Do All Of The People Work Who Will Live In All The New Housing Being Built? If you drive around the Harrisonburg and Rockingham County area, you'll see quite a bit of new housing at various stages of construction. My non-scientific, non data-driven answer is as follows... 1. Many mid-sized to large employers in this area keep on growing. 2. We continue to see smaller companies starting up or being created in the Harrisonburg area. ...and perhaps (maybe) most significantly... 3. The pandemic at least partially severed the connection between "where I work" and "where I live" as it relates to the Harrisonburg area. After a year (+) of allowing some (to many) employees to work from home, some (to many) employers have realized that remote work has its benefits. Employees can be more productive, spend less time commuting and have a higher quality of life. And sometimes, that higher quality of life for a remote worker means working for a company in a larger metro area, and living in... Harrisonburg! This is not to say that there are suddenly thousands of people living in Harrisonburg and working for companies outside of the area... but that reality is much more in play now than it ever has been in the past. Who wouldn't want to live in Harrisonburg if one's out of town employer allowed for it!? :-) | |
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Very Few New Homes Are Custom Built Homes These Days |
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 When speaking of single family homes (not townhouses or duplexes) currently being built in Harrisonburg and Rockingham County -- most of them are not custom built homes. There are now several regional builders in our market that are buildings many single family homes, often very quickly. It's interesting, thus, to think about how the overall housing stock in our area will be impacted over time. Twenty years ago, many new homes in our area were custom built with some spec homes mixed in as well, but we didn't have large subdivisions with 50+ or 100+ homes being built out by a single builder in just a year or two or three. I do not anticipate seeing this trend reverse itself over the coming years. I suspect from here on out we will always see more (or many more) new homes being built by large regional or national builders than we will see custom built homes. | |
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16 Townhouses Planned For Corner Of Deyerle Avenue And Lucy Drive |
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 City Council recently approved the rezoning (from R3 to R8) of a one acre parcel at the corner of Deyerle Avenue and Lucy Drive to allow for the development of 16 townhouses. Here's the potential site plan...  Learn (a bit) more via the application packet here. | |
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Three Story Apartment Building With 15 to 20 Apartments Planned On West Elizabeth Street |
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 The owners of a 0.24 acre lot on West Elizabeth Street, between North High Street and North Liberty Street, plan to build a three story apartment building with 15 to 20 apartments. The owners have received approval from the City for the rezoning required for this development to move forward. City staff, planning commission, city council and the developers all seem excited at the prospect of bringing more living opportunities to the downtown area. Interestingly...
I'm just realizing that the site will potentially be transformed from only being used by cars (a parking lot) to a use that does not allow for cars (apartment building with no on-site parking). :-) | |
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When Will Construction Begin At Bluestone Town Center? |
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 A major housing development is planned on Garbers Church Road (and Erickson Avenue) and here's an overview of the timing, looking back and looking forward... June 2022 - Details first merge on the proposed housing development January 2023 - Planning Commission considers rezoning request February 2023 - City Council approves rezoning request May 2023 - Developer purchases the land for the development January 2024 - Plat for Phase One proposed And the latest... Mid/Late 2025 - Construction anticipated to begin From the article above...
Find out more about Bluestone Town Center here. | |
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What Prices Did Buyers Pay For New Homes Over The Past Year? |
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 Over the past year, 322 new home sales have been recorded in the HRAR MLS. The full breakdown is above, but here are a few highlights of what buyers paid for new homes in Harrisonburg and Rockingham County over the past 12 months...
A few more details not shown in the data above...
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How Many More Single Family Detached Homes Will Be Built In The City Of Harrisonburg? |
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 Over the past year this is where single family detached homes were built, as reflected by sales in the HRAR MLS... City of Harrisonburg = 3 homes Rockingham County = 58 homes When looking at development proposals in the City of Harrisonburg here's the breakdown of property types being proposed... Apartments = 74% or 2,747 homes Townhomes or Duplexes = 21% or 771 homes Single Family Detached Homes = 6% or 206 homes So, I suppose it is reasonable to ask or wonder... how many more single family detached homes be built in the City of Harrisonburg? Perhaps the vast majority of single family homes that will ever exist in Harrisonburg have already been built? Perhaps over the next 10, 20 and 30 years, 95% or more of new housing units will be apartments, townhouses or duplexes? After all, the City will eventually run out of land for building more housing. As it currently stands, if you are going to buy a new single family home in the next few years it seems almost certain that it will be in Rockingham County, not the City of Harrisonburg. | |
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Evergreene Homes Proposed New Residential Development On Port Republic Road, Weston Park, To Potentially Include 74 Townhomes, 28 Duplexes And 26 Detached Homes |
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 The developer of Preston Lake, Evergreene Homes, is proposing a rezoning in the City of Harrisonburg to allow for the development of a new neighborhood across Port Republic Road from Westmoreland Drive...  This development would include 128 homes currently shown as:
The City of Harrisonburg Planning Commission will hold a public hearing about this rezoning request on February 14, 2024. City staff recommends that this rezoning request be denied, for two reasons... [1] The Comprehensive Plan shows this area as Low Density Mixed Residential which is intended to include large and small lot single family detached dwellings, sometimes with duplexes - but not with townhouses. The majority of the dwelling units in the proposal for Weston Park are townhouses. [2] Only 6.3% of the approved dwelling units between January 2021 and February 2024 have been single family homes and 1.6% have been duplexes. During that timeframe, 23.2% of the approved dwelling units have been for townhomes (589 of them) and 68.9% of the approved dwelling units have been for multi-family properties (1,747 of them). As the staff report summarizes... "Given the lower number of single-family detached and duplex dwellings that have been given use-approval compared to townhomes, and that the Comprehensive Plan recommends single-family detached and duplexes for the subject property, at this time, staff does not believe the subject property needs to be rezoned to allow for more townhome development." | |
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Starbucks, Chipotle, Hotels, Storage And More Planned For Urban Development Area |
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 Above is a recently updated map of the Urban Development Area. Some updates to be aware of... [1] Site work has begun for Wentworth Apartments. [2] An extended stay hotel is being built on Stone Port Blvd. [3] A new Chipotle might be built on Stone Spring Road next to the new 7-11 gas station that is almost complete, which is next to Taco Bell. [4] A new Starbucks may be built on Stone Spring Road. [5] A Hyatt Hotel may be built behind Walmart. [6] CubeSmart Storage was recently completed and Stone Spring Storage is being constructed. Download the full sized map here. | |
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Most Buyers Include A Study Period In A Contract For A Building Lot Or Land |
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 Getting ready to build your dream home? Exciting!!! Did you find the perfect building lot in a neighborhood? Or an ideal 2.5 acre lot in the County where you plan to build? Fantastic!!! You have two options at this point... [1] Continue to do lots of research and planning, and then if it all pans out, make an offer and try to negotiate a deal with the seller. [2] Make an offer with a study period. Most buyers seem to be more comfortable with the second option -- going ahead and making an offer, with a study period. This strategy allows you to make sure you can negotiate a deal with the seller that works for you from a price (and other terms) perspective -- before then spending a good bit of time, and possibly money, on confirming that the lot or land is suitable for your building plans. During your study period (often 30, 60, 90 days or longer - depending on the property type) you will likely... [1] Walk the building lot with your builder. [2] Research details of utility locations and/or availability. [3] Confirm any easements that would affect where you could build. [4] Research how much rock may exist and whether that will affect your building plans. [5] Get pricing from your builder for building your dream home now that you have a proposed site/location for it. These are just a few of the items we might research during the study period in your contract -- all pointing us to a greater understanding of whether your plans for building on the lot will work well for you. If you're ready to explore some land or building lots, be in touch! | |
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There Are A Limited Number Of Available Building Lots For Custom Homes In Our Area |
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 Just an observation here, but there are currently a very limited number of options for buying a building lot, hiring a home builder and building a custom home. Furthermore, I don't know if that will change much over the next few years. There are (27) building lots on the market (per the HRAR MLS) in or near Harrisonburg -- with a "Harrisonburg" or "Rockingham" address. Of those 27 building lots... 7 are in Crossroads Farm, 9 are in The Springs at Osceola,and the other 11 are scattered around here and there. In the time I have been in real estate (20 years or so) there have been quite a few single family home neighborhoods where future homeowners (or builders) could purchase a building lot to build a home. These included:
Now, there aren't any (or many) undeveloped building lots in these neighborhoods... and I don't know what the next neighborhoods will be to go on this list. Most current new developments or proposed developments seem to be one of three varieties... [1] Apartments [2] Townhouses [3] Detached Homes all to be built by a regional or national builder So, when will we (will we?) see other neighborhoods planned and developed where building lots can be purchased where a builder can be hired to build you a home? | |
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An Increasing Portion Of Home Sales Are New Home Sales |
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 Between 2015 and 2020 the portion of annual home sales that were new homes ranged from between 10% and 15% per year. But... we started to see the share of new home sales increase significantly in 2021 when the shared of new home sales jumped up to 19% of total home sales. Then, in 2022 that rose to 26% and dropped off a touch in 2023 to 25% of all home sales being new homes. A few thoughts regarding this trend... [1] New home sales are and will continue to be an important segment of our local housing market given that our local population is increasing. [2] This increase in the share of new home sales in 2021 (and continuing through 2022 and 2023) coincides with when we started seeing more regional or national home builders in our marketplace. The three main regional or national builders we are seeing develop communities in our area are Evergreen Homes, Ryan Homes and DR Horton. [3] Super low mortgage interest rates between 2019 and 2022 has resulted in a LOT of homeowners currently having very low interest rates (below 4%) on their current mortgages. This will likely result in less turnover (resale) of existing homes over the next year or two so long as current mortgage interest rates stay at or above 6%. | |
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94 New City Townhomes Proposed On Pear Street In Cobblers Valley, Zephyr Hill |
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 Ryan Homes is in the process of developing a neighborhood called Cobblers Valley, on Pear Street, in Rockingham County. The portion of the development to be built in Rockingham County is intended to include:
There is also a small portion of the development that will exist in the City of Harrisonburg, to include 32 townhomes, highlighted in purple above. A new rezoning to go before the Planning Commission this evening would allow for an additional 21 townhouses, highlighted in blue above. A second rezoning to go before the Planning Commission this evening would allow for an additional 41 townhomes, highlighted in red/orange above. My understanding is that the 53 townhomes (32 +21) would be a part of Cobblers Valley, but that the 41 townhomes would be a separate development, called Zephyr Hill, which already includes 55 planned townhomes. View City documents related to the rezoning and special use permit requests here (21 townhomes) and here (41 townhomes).  | |
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Tuscan Village, A New Community To Include 57 Townhomes, 54 Apartments, 2 Single Family Homes, Proposed Near Intersection Of Keezletown Road and Country Club Road |
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 The Harrisonburg Planning Commission considered a request last evening for a new community proposed to be built near the intersection of Keezletown Road and Country Club Road. This potential new community would feature 57 townhomes and 54 apartments and would be developed by Scripture Communities, the builder/developer who has also developed Stone Spring Village, Avalon Woods, Heritage Estates, Liberty Square, The Glen at Cross Keys, The Townes at Bluestone, and is currently developing The Townes at Congers Creek. Of note - I represent this builder/developer and have been involved in the planning of this potential new community. The architectural inspiration for this new community comes from the stone and stucco of Italy and the builder plans to incorporate these elements into the exterior of all of the townhomes and apartments. Below are two renderings of the plans for the townhome section of the neighborhood...   A few other items to note about this potential new community in the City of Harrisonburg...
Multiple people spoke in favor of this request at the Planning Commission and a few others raised concerns. The concerns that were raised were primarily related to traffic on the roads adjacent to the potential new community -- and stormwater management. The developer will be responsible for ensuring that the development does not create additional stormwater coming off the site to neighboring properties -- and the City has future plans to improve both adjacent roads, though they are not yet funded. City planning staff recommended that the rezoning request (and other releated requests) be approved and the Planning Commission unanimously voted to recommend that City Council approve the requests to allow for this development to move forward. City Council will review this request in January. | |
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Middleburg at Stone Spring, To Include Up To 500 Apartments, Proposed Adjacent To The Reserve At Stoneport |
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 A developer out of Vienna is proposing that the 31.5 acre parcel shown above be rezoned from A-2 (agricultural) to PMF (Planned Multi-Family) to allow for the construction of 500 apartments in two phases adjacent to The Reserve at Stoneport. Phase 1 would include no more than 300 garden-style apartments in the larger buildings shown below with 30 apartments per building. Phase 2 would include no more than 200 townhome-style apartments shown as the permitted to be smaller clusters of buildings below with four to eight townhouse style apartments per building. Here's the full proposed site plan...  A common question when it comes to new developments is the impact on schools. Per Rockingham County calculations, this development is estimated to generate an additional 31 students at Peak View Elementary, 18 students at Montevideo Middle School and 22 students at Spotswood High School. The Rockingham County Planning Commission recommended denial of the rezoning request on November 8, 2023. The Board of Supervisors tabled the rezoning request in their meeting on November 15, 2023. This request will likely be reviewed again by the Board of Supervisors in the near future. Download the full rezoning application packet including a larger site plan here. | |
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The High(er) Cost Of Money May Slow Down The Start Of Approved Residential Developments |
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 Over the past few years, thousands of potential new housing units have been proposed to be built in the City of Harrisonburg and Rockingham County. Some of these new developments are under construction, but many are sitting idle as undeveloped land that is approved for a new housing development but with no clear indication of if or when construction might begin on those new homes. One of the biggest potential limitations on when these new homes might be built is -- the high(er) cost of money -- current interest rates. Developers and builders are not going out to get traditional mortgages in order to build out these communities -- but they almost always do need to borrow money from a bank to start a new housing development. That money goes towards infrastructure (roads, water, sewer, sidewalks) as well as towards the construction of the housing units -- all of which are bills that have to be paid before the first home is sold or rented. So, will we see all of these thousands of proposed or approved new home developments be built over the next year or two? Almost certainly not... and one of the biggest things holding back the development of these new communities is the current economic climate with high(er) interest rates across the board. If/when interest rates start to decline, perhaps we'll then see some of or more of these new developments being built. | |
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How Should Harrisonburg and Rockingham County Think About The School Impact Of Previously Approved, Unstarted, Residential Developments? |
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 In reviewing a recently proposed rezoning request for a new residential development, I found this insightful comment from Rockingham County Public Schools... "This property is located in the Spotswood High School District. RCPS estimates this would generate an additional 25 students at Cub Run Elementary, 13 students at Montevideo Middle School, and 16 students at Spotswood High School. With proposed redistricting in the next year, each school will have the capacity to handle this increase in enrollment. However, it should be noted, that we estimate the cumulative effect of this development and others approved in the last 3 years once all are 100% built out would bring Cub Run near capacity." The last part is interesting and I don't know how the County plans to handle this situation... "However, it should be noted, that we estimate the cumulative effect of this development and others approved in the last 3 years once all are 100% built out would bring Cub Run near capacity." I believe this dynamic exists in both the City and County at the moment. If most or all residential developments that have been approved are built in the next few years then quite a few schools would likely be at or over capacity. I'm not sure how the County (or the City) should factor that dynamic into decisions about whether to approve additional proposed developments. Should the County and City assume that all approved developments will be built soon, and hesitate to approve more based on the theoretical potential cumulative impact of the developments that have not begun? Should the County and City ignore the potential cumulative impact of developments that have not begun and evaluate each new rezoning proposal based solely on the direct impact on schools for that one development? Perhaps they need to be somewhere in between these two extremes? Most new developments -- on their own -- won't cause a school or schools to be beyond capacity. If all approved and proposed new developments are built within the next few years it seems likely that some or many schools would be at or beyond capacity. But many (most?) approved developments have not been started... it is unclear if or when many of them will be developed. | |
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Scott Rogers
Funkhouser Real
Estate Group
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scott@funkhousergroup.com
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