Statewide report: ‘North Carolina faces a significant housing inventory gap'

Yahoo

07-02-2025

A mixed-income housing project under construction in Durham. (Photo: Greg Childress)
North Carolina is facing a significant housing inventory gap across all income levels and geographic regions, according to a statewide report commissioned by the NC Chamber Foundation, NC REALTORS and the N.C. Homebuilders Association.
The report, which was released this week, predicts the gap will increase with projected job and population growth. Addressing the gap could generate $489 billion in economic activity and create nearly 2.2 million jobs, the report said.
'Addressing North Carolina's significant housing supply gap is more than just meeting immediate demand; it's a critical investment in our state's future,' NC Chamber Foundation President Meredith Archie said in a statement. 'With projected population and job growth, accessible and available housing is essential to supporting our communities, strengthening infrastructure, and creating an environment where both workers and businesses can thrive.'
The report details rental and for-sale housing supply inventory in each of the state's 100 counties for a five-year projection period from 2024 to 2029.
Eighty counties have projected increases in the number of households, with the largest percent increases projected to occur in Brunswick (15.3%), Johnston (12.2%), and Currituck (11.3%) counties. Wake and Mecklenburg counties are projected to have the largest numerical increases in new households, totaling 41,241 and 35,676, respectively.
Meanwhile, 20 counties have a projected decrease in the number of households, with individual declines that range from less than 0.1% (Vance County) to 3.0% (Northampton County).
The research group Bowen National Research conducted the Housing Supply Gap analysis. Mike Walden, an emeritus professor of agricultural economics at NC State and a private consultant, conducted the economic impact analysis.
Here are the report's key findings:
The number of households in the state is projected to increase by 5% (218,160 households) between 2024 and 2029.
North Carolina faces a five-year housing inventory gap of 764,478 units (322,360 rental units and 442,118 for-sale units).
The state has an overall for-sale availability rate of 0.8%. This is well below the 2%-3% range of a 'healthy' market.
Only nine counties, representing less than 10% of the state's counties, have a median list price under $200,000, making it likely that many lower income households, including first-time homebuyers, have difficulty finding affordable homes to purchase.
The statewide vacancy rate for multifamily rental units is 5%. This is within the healthy market range of 4%-6%, but affordable rental programs show near-zero vacancies and over 41,000 households are on waitlists for affordable rental housing.
'The data and key findings of the housing study underscore not only the pressing need but also the urgency of implementing tangible solutions to bridge the housing inventory gap at all income levels across the state,' said NC REALTORS 2025 President John McPherson.
The report concludes that North Carolina is too large, has too many differences among rural, urban and suburban areas and too many regional socioeconomic variations to develop a one-size-fits-all solution for all regions.
'However, there are many broad housing efforts that housing advocates across the state could consider when making efforts to address housing issues in the state,' the authors wrote.
The authors made these recommendations:
Educate the public, including decision-makers, on the housing characteristics, challenges and opportunities in North Carolina.
Research other communities and states on possible approaches to address housing Issues.
Encourage municipalities and counties to develop individual housing plans.
Support efforts to preserve existing housing and encourage new residential development.
Encourage local housing advocates to build organizational capacity.
Leverage data from this statewide housing study to encourage and attract residential development.
'This report demonstrates the urgency of policy changes needed for housing and the financial benefits for the community and all levels of government,' said North Carolina Home Builders Association Executive Vice President Tim Minton.