The State of the Region: Hampton Roads 2026

Authors

• Dragas Center for Economic Analysis and Policy, Old Dominion University
• Vinod Agarwal, Old Dominion UniversityFollow
• Josh Andrews, Old Dominion UniversityFollow
• Andrea Barcenas, Old Dominion UniversityFollow
• Barbara A. Blake, Old Dominion UniversityFollow
• Leora Friedman, Old Dominion UniversityFollow
• Elizabeth Janik, Old Dominion UniversityFollow
• Angela Kwao, Old Dominion UniversityFollow
• James V. Koch, Old Dominion UniversityFollow
• Feng Lian, Old Dominion UniversityFollow
• Nathan Moore, Old Dominion University
• Melody Nguyen, Old Dominion UniversityFollow
• Terry Parker, Old Dominion University
• Mohamed Rahoui, Old Dominion UniversityFollow

Document Type

Report

Publication Date

2026

Pages

174 pp.

Abstract

This is Old Dominion University’s 27th annual State of the Region: Hampton Roads Report. While it represents the work of many people connected in various ways to the university, the report does not constitute an official viewpoint of Old Dominion, its president, Brian Hemphill, Ph.D., the Board of Visitors, the Strome College of Business, or the generous donors who support the activities of the Dragas Center for Economic Analysis and Policy.

This year’s report provides an opportunity to reflect on the region’s recent economic performance and ask how changes in federal trade, immigration, civilian employment, and spending policy have impacted Hampton Roads over the last two years. There is good news to report as the region’s economy has grown for five consecutive years and is expected to grow in 2026. Defense spending in the region continues to rise and will likely reach record levels in 2026 and 2027. Federal spending fuels the regional economy but also increases our dependency on decisions made in the halls of Congress and the White House.

The good news, however, is tempered by declines in federal civilian employment, a sector long thought immune to changes in policy. Higher tariffs have lowered the dollar volume of trade through the Port of Virginia and inflation has eroded the purchasing power of many residents of Hampton Roads. Declines in legal immigration may undermine population growth in the latter half of the current decade.

Since its inception in 1999, the State of the Region: Hampton Roads Report has sought to inform without minimizing the challenges facing the region or downplaying the opportunities that could spur economic growth. We opine that now is the time to increase efforts to diversify the region’s economic base to bolster private sector growth over the remainder of the decade.

Repository Citation

Dragas Center for Economic Analysis and Policy, Old Dominion University; Agarwal, Vinod; Andrews, Josh; Barcenas, Andrea; Blake, Barbara A.; Friedman, Leora; Janik, Elizabeth; Kwao, Angela; Koch, James V.; Lian, Feng; Moore, Nathan; Nguyen, Melody; Parker, Terry; and Rahoui, Mohamed, "The State of the Region: Hampton Roads 2026" (2026). State of the Region Reports: Hampton Roads. 229.
https://digitalcommons.odu.edu/sor_reports/229