Author: Jeff DeBellis
In previous articles, we explored household incomes and wages and the degree of differences in counties across North Carolina, housing costs, growth rates, and rental vs homewowner burden. Today, we explore housing values and burden at the county level to identity regional disparities across the state.
The US Census Bureau's latest American Community Survey (ACS) data reveals the diversity and challenges of North Carolina’s housing situation. From million-dollar properties concentrated in urban centers and retirement-heavy communities to low-value homes in rural counties, the state's housing market is marked by stark contrasts and varying levels of affordability.
The High-End Market: Million-Dollar Homes Concentrated in Select Counties
North Carolina's luxury housing market is thriving in pockets of the state. As shown in the map below, counties like Mecklenburg (7.1%), Orange (8.0%), and Wake (4.9%) have the highest share of million-dollar homes, driven by the economic vitality of urban centers like Charlotte, Chapel Hill, and Raleigh. Coastal and Mountain areas also command premium prices, with counties like Dare (4.6%), Buncombe (6.0%), and Watauga (4.8%) attracting affluent buyers and retirees. Million-dollar homes represent 2.8% of all owner-occupied units in the state, a significantly smaller percentage than the nation overall (6.5%).
Low-Value Homes Prevalent in Many Counties
Other areas of the state are much more affordable. Across the state, one in four (24.4%) owner-occupied homes are valued at less than $150,000. Over half of the owner-occupied homes in 22 NC counties are below that threshold. In Robeson, the county with the lowest owner-occupied median value, 71.5% are valued under $150,000, followed by Bertie (71.4%) and Scotland (67.6%) counties.
Figure 2, the Share of Homes Under $150,000, is not a complete mirror of the Million Dollar Home map from Figure 1. Johnston County has relatively few high-value and low-value homes (among the bottom 25% of NC counties in share of both). Conversely, Northampton County is among the top 25% in share of high- and low-value owner occupied homes.
Affordability
The share of high-value and low-value homes does not necessarily signal an area’s affordability. Economists often use rental costs to measure affordability, since homeowners can have vastly differing degrees of cost burden depending on the appreciation of their home since they bought it and the interest rate they’re paying, if one at all. Across NC, 38.6% of rental households spend more than 35% of their income on housing costs, a threshold considered significantly burdensome by experts. The map of rental cost burden differs significant from both the high- and low-value maps above – with a mix of college towns in high home value counties like Watauga (highest in NC at 58.9%) and Orange (45.4%) to rural, low- value coastal communities like Tyrrell (56.8%) and Hyde (56.4%) having high shares of cost-burdened households. Lower rates of rent-burdened households exist across the state in rural and near-urban counties such as Gates (lowest at 22.3%), Graham (24.3%), and Alexander (26.4%).
Conclusion
This data reveals a complex housing landscape in North Carolina that has significant implications for the state's current and future economic prosperity. Differences in home values and affordability across the state underscore the need for further consideration in addressing housing challenges as a key component of economic growth and resilience. Thriving luxury housing markets in urban centers reflect economic vitality but also highlight persistent affordability issues. While the prevalence of low-value homes in rural and economically distressed areas creates challenges building the quality of life needed to attract and retain residents and industry. Due to disparities in incomes, rental housing cost burdens (affordability) are prevalent across urban and rural geographies. The issues of housing quality, value, and affordability will be key to expanding economic growth and opportunity to communities across North Carolina.