236 new townhomes proposed in effort to tackle Cape Fear’s workforce housing gap
WILMINGTON, NC (WWAY) — A local developer is proposing a new approach to help address New Hanover County’s growing need for workforce housing with a planned townhome community in Castle Hayne.
Cape Fear Development has announced plans for Proximity Blue Clay, a 24-acre development that would include 236 townhomes designed for local workers who often struggle to afford rising housing costs but do not qualify for traditional affordable housing programs.
The proposal comes as New Hanover County faces a significant housing shortage. A 2025 county housing study found the area will need approximately 21,000 new affordable and workforce housing units by 2043. However, the county currently averages only about 51 new workforce or affordable housing units each year, according to Cape Fear Development.
The company said Proximity Blue Clay is designed to provide a new model for creating workforce housing by combining lower development costs, streamlined construction timelines, and investment from public agencies and private impact investors.
“This creative approach will help deliver just that, while providing an economic return to those community partners that make an investment in workforce housing,” said Brian Eckel, a partner at Cape Fear Development. “Our local workforce and their families need high-quality, affordable housing options.”
The planned community would feature one-, two-, and three-bedroom townhomes with amenities typically found in market-rate developments, including:
- A swimming pool
- Fitness center
- Business center
- Garages
- Green space
- Dog park
The development would target households earning about 80% of the area median income, offering rents approximately 20% below market rates. The workforce housing affordability requirement would remain in place for 10 years through an affordability covenant.
County considering $2 million investment
New Hanover County commissioners are expected to consider a proposed $2 million challenge investment next week to help launch the project.
Unlike traditional affordable housing programs that rely on grants or forgivable loans, Cape Fear Development said the proposal would operate as an investment. The county’s contribution would be repaid after 10 years, along with a 5% annual interest return, allowing funds to potentially be used again for future housing initiatives or other public services.
Cape Fear Development said the project will only move forward under the workforce housing model if enough commitments are secured from impact investors. If sufficient funding is not obtained, the company said it would proceed with the development as a market-rate project without using public or investor workforce housing funds.
Live Oak Bank has committed to participate in the initiative.
“Access to attainable housing helps remove barriers to employment, supports talent attraction and retention, and creates greater opportunity for working families,” said Live Oak President William C. (BJ) Losch III. “By investing in housing, we are investing in the people who power our communities and in the long-term success of our region.”
Cape Fear Development said the goal of Proximity Blue Clay is to create more housing options for essential workers, including teachers, law enforcement officers, firefighters, healthcare employees, and service-sector workers who contribute to the region’s economy.
The project is being presented as a potential model for expanding workforce housing opportunities throughout the Cape Fear region.
