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Wilmington's Housing Market: Rising Home Values and Shifting Ownership Patterns in Coastal North Carolina
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Wilmington, a vibrant coastal city in North Carolina, has experienced significant changes in its housing market over the past decade. Known for its historic riverfront and beautiful beaches, Wilmington has seen fluctuations in homeownership rates, average home prices, and average rent prices. The city has generally maintained a slightly higher percentage of renters than homeowners, with average home prices and average rent both showing an upward trend over time.
The homeownership rate in Wilmington has fluctuated between 41% and 47% from 2013 to 2022. Interestingly, the city saw its highest homeownership rate of 47% in 2017, which coincided with a period of relatively low average home prices. In 2017, the average home price was $222,777. However, as average home prices began to rise more steeply, the homeownership rate generally declined. By 2022, when the average home price had increased to $360,054, the homeownership rate had dropped to 44%.
Federal interest rates appear to have influenced homeownership rates in Wilmington. When interest rates were at historic lows between 2013 and 2016, hovering around 0.1%, the city maintained a relatively stable homeownership rate of 43-45%. As interest rates began to rise in 2017, reaching 1% and then climbing to 2.16% by 2019, the homeownership rate showed some volatility, peaking at 47% in 2017 before declining to 41% in 2018.
The rental market in Wilmington has shown a strong correlation with population growth and average rent prices. The percentage of renters increased from 55% in 2013 to 59% in 2018, coinciding with a population growth from 112,072 to 122,610 during the same period. Average rent prices also saw a significant increase, rising from $827 in 2013 to $998 in 2018. This trend continued, with the average rent reaching $1,298 in 2022, while the renter percentage remained high at 56%.
Looking at the most recent data, the average home price in Wilmington rose to $389,104 in 2023 and further increased to $405,997 in 2024. This represents a substantial 12.8% increase from 2022 to 2024. Concurrently, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Wilmington to continue their upward trajectory, potentially reaching around $500,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $1,500 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, Wilmington's housing market has shown a clear trend of increasing average home prices and average rent, with a slight shift towards a higher percentage of renters over the past decade. The interplay between federal interest rates, population growth, and housing affordability has significantly influenced these trends. As the city continues to grow and attract new residents, it's likely that the housing market will remain dynamic, with potential challenges in affordability for both homeowners and renters in the coming years.
