News Summary
North Carolina has experienced substantial population growth, adding approximately 165,000 new residents. This growth, driven by domestic migration and a high birth rate, is causing significant strain on the housing market. Several cities are facing tight housing conditions, and legislative measures are being proposed to address the housing crisis. Experts predict challenges ahead as the state’s housing demand continues to outstrip supply, highlighting an urgent need for effective policies.
North Carolina is experiencing significant population growth, having added approximately 165,000 new residents in 2024. This surge positions the state with the fourth-largest numerical gain in the United States and a growth rate of 1.5%, second only to six other high-growth states including Florida and Texas.
The expansion of North Carolina’s population is largely driven by an influx of individuals relocating from other states, as well as a higher-than-average birth rate. In fact, Texas is the only state that reported more net domestic migration than North Carolina in the past year. This significant increase in residents is placing a strain on the housing market, as communities struggle to keep pace with the demand for homes.
Many areas throughout the state are experiencing tight housing markets, where the demand for housing far exceeds the available supply. For example, the city of Asheville faces a shortage of 4,913 housing units, which equates to about 10% of the current housing stock. Additionally, the median price-to-income ratio in Asheville stands at a challenging 7.1, making home ownership increasingly difficult for many residents.
Other cities experiencing similar challenges include Boone and Chapel Hill with housing shortages hovering around 10%, while Wilmington and Durham are seeing shortages of 6% and 5.5% respectively. The capitals of North Carolina, Raleigh and Charlotte, are also facing housing deficits of about 5.2%.
The situation is not uniformly bleak; some regions such as Greenville, Cary, Gastonia, Concord, Winston-Salem, High Point, Greensboro, Jacksonville, Apex, and Fayetteville report better housing conditions with lower shortages. In response to the growing demand for affordable housing, state and local policymakers are enacting measures aimed at improving housing accessibility. Initiatives include expediting construction permitting processes, altering zoning codes to promote a diverse range of housing options, and sometimes lowering tax rates.
Specific legislative proposals to enhance housing availability include Senate Bill 497 to increase housing density, Senate Bill 495 which aims to authorize accessory dwelling units statewide, and Senate Bill 499 that seeks to facilitate the conversion of various spaces into residences. These measures are seen as necessary to tackle the escalating housing crisis as demand continues to outstrip supply.
The hot housing market is particularly evident in the 27608 ZIP Code encompassing areas like Hayes Barton and Five Points. This area has been noted as one of the most expensive housing markets in the region, where home prices average around $1.4 million. Hayes Barton is appealing for its affluent, walkable neighborhoods and is near quality schools, coffee shops, and restaurants, which contributes to its high real estate values.
Despite the rising prices, some experts predict a slight nationwide decline in home values, likely influenced by the slowing of new construction due to uncertainties surrounding federal immigration policies and tariffs. Nevertheless, North Carolina’s housing market remains a seller’s market, with substantial competition among buyers. The average home value across the state currently stands at $336,483, although cities like Goldsboro, Forest City, and Rockingham are anticipated to experience the most significant decreases in property values.
Ultimately, North Carolina’s housing landscape is under immense pressure from ongoing population growth, compounded by insufficient housing supply, highlighting the urgent need for effective policies and solutions to accommodate the state’s booming population.
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Additional Resources
- ABC11: Raleigh ZIP Code Ranked Hottest Housing Market
- WRAL: Investigates Raleigh Housing Market
- Charlotte Observer: North Carolina Housing Market
- Norada Real Estate: Raleigh NC Real Estate Market
- Wikipedia: North Carolina
Author: STAFF HERE ASHEVILLE WRITER
ASHEVILLE STAFF WRITER The ASHEVILLE STAFF WRITER represents the experienced team at HEREAsheville.com, your go-to source for actionable local news and information in Asheville, Buncombe County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Asheville Bread Festival, LEAF Festival, and mountain sports tournaments at Biltmore Estate. Our coverage extends to key organizations like the Asheville Area Chamber of Commerce and Explore Asheville Convention & Visitors Bureau, plus leading businesses in hospitality and brewing that power the local economy such as the Biltmore Estate and Sierra Nevada Brewing Company. As part of the broader HERE network, including HERECharlotte.com, HEREGreensboro.com, HERERaleigh.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.
