While the real estate market in the Triad area continues to rise, surrounding cities in North Carolina are experiencing the residual effects. The afterglow in Wilmington’s smaller housing market is making it a top consideration for home investors. As renting starts to become extremely competitive, here’s what to know about Wilmington real estate market trends.
Economical Safety Net
Wilmington’s robust economy is making it an accessible location for property investment. Expanding several fields such as health, tech, and entertainment, the area has a variety of equally booming businesses to keep cash flow stable. Since Wilmington’s housing market is not reliant on the success of one industry, you’re more likely to get timely payments as a property investor.
Rich Employment Opportunities
Wilmington’s job market has grown between 1-2% in recent years, which means more people seeking work and more demand for housing. With unemployment under 4%, there’s already a decent trickle of new rental applicants. Wilmington’s metro area provides an even larger pool of applicants – at least a quarter million.
There isn’t enough population influx to demand an abundance of apartment construction. The job market provides the perfect cushion to make money back on your investment property while home values are on the rise. Currently, home prices have been modestly increasing by six to seven percent (6.4% since 2018).
Rising Yet Affordable Home Values
Homes in Wilmington have been going for a median price of $230,000 for the first half of 2019, which is the average listing price, according to Trulia. This is being cited as the most significant home value increase in a decade of upward pricing trends. However, Norada Real Estate says this number is inflated because of high-cost waterfront properties, and homes can be more commonly found at $200,000.
Lately, Wilmington homeowners see their properties sell for up to 2% more than the previous year, by as much as $4000. Zillow expects another 3% home value increase within the coming year. While appreciation rates are lower in Wilmington than many major metro areas in the U.S., property taxes are also lower.
Room for Rising Rental Rates
Rental values were up 5% last year, and are continuing well into 2019. This surpasses North Carolina’s rental rate increase by 2% and the national average by just under 1%. The steady growth has been labeled as a cause for concern. Many fear the lack of affordable housing is financially crippling residents, with many paying over a third of their gross income on rent alone. Others report citing that rental rates have remained flat, however, as Wilmington’s median rent hovers around $1500.
Different Types of Home Investments
Mobile homes are top-rated housing options in North Carolina, especially in Wilmington, where low cost is becoming harder to find. With rising land costs and many parks up on the market, many are seeing mobile parks as an excellent rental property investment.
Detached single-family homes are Wilmington’s most popular type of rental unit (a statistic that applies nationwide). In Wilmington alone, single-family homes make up half the available units on the market. Apartment complexes are an evident and close second, representing 27.61% of housing. Both types of accommodation are commonly rented to students of Wilmington’s University of North Carolina, especially units closer to campus.
As many as 700 solar systems have recently been installed in Wilmington’s surrounding areas. With utility costs on the rise, many homeowners are seeking cheaper alternatives through renewable energy and saving as much as thousands of dollars by doing so. Producing your power also protects you from companies charging higher rates. Interest in solar has surged since Hurricane Florence left many without power.
Hurricane protection is another rising Wilmington real estate trend as homeowners take advantage of wind and flood insurance, and get payouts for making upgrades to roofs and windows. Water damage will cost more than roofing damage so that you can choose your battles.
You can always hire a trusted property manager like Real Property Management Champion to provide thoroughly researched rental market trends. We can also advise you when and how to act on updates that would affect the return on your investment property. Contact RPM Champion to stay updated on rental market trends without the hassle of research and implementation.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.