As prices remain high, what’s the future of housing in New Hanover County?
NEW HANOVER COUNTY, NC (WWAY) — For the last several years, housing prices in New Hanover County have been sharply on the rise.
Data collected by Root Policy Research shows that someone making a median income in New Hanover County can only reasonably afford around 5% of homes on the market.
That reflects national trends but also points to migration from across the country to the southeast.
Mouchine Guettabi teaches economics at UNCW. He says with people moving to the area—that drives up demand, but the recession in 2008, and economic disruption during COVID, less building resulted in a lack of supply.
Compound that with higher interest rates, and it spells hardship for the average home buyer.
“To afford a $300,000 home, or the payment on a typical $300, $400 thousand dollar home increased substantially, even without taking account what’s happened to price because borrowing costs increased,” Guettabi explained.
Guttabi says main way to address the issue is to build more houses—but that comes with challenges.
“From a policy perspective, you can’t control demand because if the area is attractive people are going to keep coming. The only thing you can control is what do you do with supply,” He said.
New Hanover County Comissioner Rob Zapple sees part of the solution in public-private partnerships.
The county allocates $3 million each year to the Workforce Housing Fund, which leverages investment into projects like the Starway Apartments, which is set to bring 278 affordable apartments by the end of the year.
“You know, you’ll be looking at apartments somewhere in the range of $600, possibly lower, $600 to $900 a month,” Zapple said. “Here in New Hanover County where we have one-bedroom apartments going for $1200 to $1400, that’s a substantial decrease and will really open up options for a lot of people.”
Zapple notes another challenge is land. With limited space, development has pushed into southern Pender County and eastern Brunswick.
Guttabi says that tracks with other metro areas in the southeast.
“When a metropolitan area, a community grows, and it becomes more expensive, most of the growth typically tends to happen in the outskirts because people are in search of cheaper housing.”
Zapple says while many of these statistics can be troubling, there are some promising ones as well.
That same Root Policy Research report estimates the county will need to build around 2,100 housing units each year to keep up with growth.
Last year the county was just shy of that number with 1,800 units built.
